leading the bp way

THE GLOBAL PUBLICATION FOR BP PEOPLE ISSUE 3 MAY 2008

Transformation ininformation technology

Report highlights arecord year for safety

Fibre optic solution to pipeline threats

Na Kika platform leadsproduction performance

LEADINGTHE BP WAYLeadership framework to deliver forward agenda

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MAY 2008 ISSUE 3

Inside

2 HORIZON MAY 2008

Group

16Printed proofSustainability report shows 2007 was BP’s best year for safety

17Persia pioneersThe centenary of the oil find that launched BP

Refining and marketing

22 Safe flightAir BP aims for optimal safetyperformance

26 Acid houseZhuhai 2, the world’s biggestsingle train PTA unit, starts up

Exploration andproduction

36 Simple approachAnne Drinkwater talks businessand country integration

40 Logical progressionThe low-key operations that keepoffshore platforms running

Alternative Energy

42Alternative summit Hayward and Bush addressannual energy conference

45 Shining exampleAustralian expertise called in forChina’s first solar city

People

46 Paralympic dreamBP environmental scientist getsready to compete in Beijing

50 Moonlight missionWalkers’ night-time marathonfor cancer charity cash

4 In the papers 6 Upfront

19 Working Life51 Endgame

REGULAR FEATURES

Horizon is an international news magazine for BP employees, contractors and other interestedparties. It is published eight times a year. The content does not necessarily reflect thecompany’s viewpoint. Readers are free to disagree,particularly in letters to the editor. All submissions,including letters, may be edited for brevity, legality,accuracy and clarity.

Horizon is printed on Eural Super Silk paper that ismade from 100% recycled fibre using de-inked pulp.No bleaching is used in the production of this paper.

THE GLOBAL PUBLICATION FOR BP PEOPLE

ISSUE 3 MAY 2008

Transformation ininformation technologyReport highlights arecord year for safety

Fibre optic solutionto pipeline threatsNa Kika platform leadsproduction performance

LEADINGTHE BP WAYLeadershipframeworktodeliver forwardagenda

32The latest fibre optictechnology will allow BP to monitor external

threats to its network of pipelines,Helen Campbell reports

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EDITOR’S LETTER

MAY 2008 HORIZON 3

A new framework for success

GROUP chief executive Tony Hayward’s admissionthat in recent years BP has been a ‘serial under-performer’ was a brutally honest assessment of how

the company sits in relation to its competitors.His address at a gathering of the company’s top 500

leaders in Phoenix in March, left managers in no doubtthat BP had “promised a lot but not delivered very much”.

Hayward’s words still ringing in their ears, delegateswere in no doubt that if BP is to close the currentperformance gap to its competitiors, then it mustimplement the forward agenda, which was set out inOctober last year.

One part of that agenda is the new leadershipframework. For BP’s executive team, the new, singleframework is key to a making a sustainable change of

leadership behavioursacross the company.Replacing a multitudeof individual modelspreviously operatedacross the group, theframework clarifiesand defines the

behaviours required of BP’s leaders and will, ultimately,help identify the leaders of the future.

The focus of the forward agenda is on restoringrevenues, reducing complexities and changingbehaviours—and is reflected in this edition of Horizon.

On page 10, Nick Reed examines the importance ofchanging the way the business is led from the top if theperformance gap between BP and its competitors is to be closed.

One of the major forward agenda progammes alreadyunder way is in information technology and services(IT&S) and is discussed in detail in an interview withDana Deasy, the new group vice president of thefunction, on page 20.

With the continued focus on safe and reliableoperations, Paula Kolmar’s insight into a ‘safety first’mentality on the Na Kika platform in the Gulf of Mexico,on page 38, epitomizes the notion of ‘silent running’—ateam whose members talk to each other, things safely,and produce great results, without fanfare.

Greg Goodale, Editor

38 Paula Kolmar reports onthe safety and operationsphilosophies behind

Na Kika, BP’s most prolific Gulf of Mexico platform

10BP’s leadership framework is key to closing theperformance gap to the

company’s competitors, as Nick Reed reports

COVER STORY

‘Delegates were in no doubtthat if BP is to close the current

performance gap to itscompetitors, it must implement

the forward agenda.’

20Dana Deasy, group vicepresident of BP’s groupinformation technology

and services function, on howrestructuring will improve service

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In the papers

4 HORIZON MAY 2008

Forward momentumBP chief executive TonyHayward has told shareholdersthe restructuring of the oil majorshould begin feeding into higherprofits this year. Speaking at BP’sannual general meeting, he saidthe firm was too bureaucraticand burdened by a higher costbase than rivals. But he assuredinvestors BP was moving in theright direction. “There is forwardmomentum,” he said. “What wehave to do is make BP perform.That is what my team and Iintend to do.”Daily Telegraph

The board said BP was movingback on track after a year of fallingprofits, management reshufflesand an under-performing shareprice. Peter Sutherland, thechairman entering his last12months in office, admittedperformance in 2007 had notbeen good but rebuilding by newchiefexecutive TonyHaywardmeant BP was now “much betterplaced”and thatthe companyisseeing forward momentum.Hayward accepted BP neededto “raise its game” further butwas optimistic that prioritizingsafety, people and performancewas paying dividends.The Guardian

Late this year and into 2009, BP’s bottom line should reflectefforts to clean up problems andimprove performance. Lastyear, the firm knuckled down toaddress bloated staffing, delaysin getting key projects pumpingand output from refineries,including BP’s Texas City plantwhere 15 people died in anexplosion more than three yearsago. Hayward also noted BP’sproblems hindered its ability toreap benefits of 2007’s record oilprices and robust trading.Houston Chronicle

Piping inConocoPhillips and BP said on8 April that they plan to jointly

develop a $30 billion naturalgas pipeline to ship AlaskaNorth Slope gas to markets in therest of the US. The proposedDenali pipeline, which would bethe largest private sectorconstruction project ever built inNorth America, would carry upto four billion cubic feet of gas aday. Starting this summer, thecompanies plan to spend $600million on preliminary designand field work with the goal ofholding an open season for gasproducers by the end of 2010.First gas could flow as soon as2018, said Doug Suttles,president BP exploration Alaska. Oil Daily

TransCanada, which emergedearlier this year as the front-runner to bring Alaskan naturalgas to market, now faces stiffcompetition as two of the world’slargest oil companies havepledged to build a rival pipeline.BP and ConocoPhillips plan tostart developing a new gaspipeline from Alaska through theYukon and Northwest Territoriesto supply Canada and the US.The pipeline would have thecapacity to supply about eight percent of US daily consumption. The Globe and Mail

The team effort by BP andConocoPhillips to build a long-envisioned natural gas pipelinefrom Alaska’s North Slope hasothers in the industry wanting toplay too. Enbridge, the numbertwo pipeline company in Canada, says it too has discussedjoining the 2,700-kilometre

(1,700 miles) pipeline project.“We want to be full equitypartners—in the 10 to 20% rangewould be about right for us,” saidRon Brintnell of Enbridge. Shellalso may be interested in takingpart in the project. Houston Chronicle

Named after the national parkthat houses North America’stallest peak, Mount McKinley,Denali could easily surpass thefamed 1,300km (800 miles)Trans Alaska pipeline of the1970s, in length and scope.Although record oil and naturalgas prices have bulked up theirbalance sheets, oil majors andpartners in the Denali venture,ConocoPhillips and BP facehigher steel costs, stricterenvironmental laws, and amountain of regulatorychallenges rarely, if ever, seen inthe 150-year history of the globaloil business.MarketWatch

Major defenceExecutives from the five largestoil companies told the USCongress on 1 April that theyweren’t responsible for recordgas prices and defended theindustry’s record profits for2007. Executives fromExxonMobil, Shell, BP, Chevronand ConocoPhillips—whichreported combined profits of$123 billion last year—shiftedblame for high prices to issuesoutside their control, includinggrowth in global demand andgovernment restrictions on USoil and natural gas resources.Los Angeles Times

Rising gasoline prices and flushprofits are putting the oilindustry on the politicaldefensive in Washington DC, butindustry executives gave littleground to hostile members ofCongress or angry truckers onthe road. Top oil companyexecutives pushed back againstattacks on their industry at acongressional hearing,

calling for the right to drill in off-limits areas and criticizing aproposal that would take awaybillions of dollars in tax breaksfor oil to subsidize renewableenergy technology.Wall Street Journal

The confrontation highlighted adilemma facing members ofCongress and policy makers.Calling on the oil industry todrop gasoline, diesel-fuel andheating-oil prices is popular withvoters. Bob Malone (pictured),chairman of BP America, saidthat his company, like other oilproducers, is already investing in renewable energy. BP isbuilding 700 megawatts of windpower this year, and last year itblended 763 million gallons (2.9billion litres) of ethanol withgasoline. But Malone said bothrenewable energy and traditionalfossil fuels will be necessary tomeet demand.Wall Street Journal

The US hearing came as the priceof regular unleaded gasoline inthe US hit a record high,according to the AmericanAutomobile Association. On 1April, independent truck driversstaged protests around thecountry against the rising cost ofdiesel fuel, complaining that theycannot make a living when itcosts more than $1,000 to fill uptheir tanks. The oil companiessaid their record profits werealigned with other industries,noting oil and gas companiesearned an average of 8.3 centsper dollar of sales, compared

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MAY 2008 HORIZON 5

with 7.8 cents per dollar for theDow Jones average.San Francisco Chronicle

Australia forwardThe partners in Australia’sNorth West Shelf joint venturehave approved the developmentof the North Rankin 2 (NR2)project, operator WoodsidePetroleum said on 31 March.Once the project is completed,the two platforms are to beoperated as a single integratedfacility. The addition of the fifthtrain will boost the North WestShelf ’s total liquefied natural gas(LNG) production capacity by4.4 million metric tonnes peryear to 16.3 million from late2008. The six equal partners areBHP Billiton, BP, Chevron,Japan Australia LNG, Shell andWoodside. The venture produces about 40% ofAustralia’s oil and gas. Platts

Woodside and its North WestShelf partners have agreed tospend around $4.6 million on a third offshore productionplatform. NR2 will extend thelife of the project, which beganoperating in 1986, at least until2041. The legs for the newplatform will be built inIndonesia and the topsides inSouth Korea. The NR2 project,including the platform, has beenunder detailed planning forabout three years.The Australian

Deepwater discoveryBP has chalked up what appearsto be another respectable oildiscovery in the deepwaterGulf of Mexico (GoM). “Thisdiscovery, in the vicinity of our2003 Tubular Bells discovery,further strengthens BP’sresource base in the GoM andhas the potential to become animportant new source ofproduction for the US,” saidAndy Inglis, BP’s top explorationand production executive. The

new find, Kodiak, will operatedby BP with a 63.75% workinginterest. Italy’s ENI holds a 25%stake while Japan’s Marubeni Oil& Gas has 11.25%.Oil Daily

BP’s discovery Kodiak,near itsTubular Bells find in thedeepwater GoM, could result inthe development of bothresources. The probe wasdeviated with a horizontal step-out of 2,200 metres (7,400 feet).The find is in a hub-rich area ofthe GoM. BP said furtherappraisal will be required todetermine the size andcommerciality of the find.Upstream

Azerbaijan acceleratesBP is planning to increase thecapacity of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline by20% from the current 1 millionbarrels a day (b/d) to 1.2 millionby the end of this year, with afurther capacity increase underconsideration, the BTC PipelineCompany said. The increase is to be achieved by the use of drag reducing agents, which will be injected into the line atthree points.Platts

The BP-led BTC pipeline targetsan increase in capacity to 1.2million b/d in 2008 and will startto use that capacity level fromnext year, BTC Turkey managerCan Suphi said. He also said onemillion b/d would flow by theend of this year. Currently,

875,000 b/d is flowing throughthe pipeline. Suphi said capacityfor the pipeline, opened in 2006,could rise to 1.6 million b/d by2012 to 2013.Reuters

BP and partners will expand thecapacity of their South CaucasusPipeline from Azerbaijan toTurkey by 20% next year, thepipeline’s Turkish manager said.BP is currently pumping about875,000 barrels of crude a day tothe Turkish Mediterranean portof Ceyhan. BP will invest instorage and loading facilities tomeet the additional capacity.There are currently no plans toship Russian, Kazakh or Iraniangas through the pipeline, he said.Bloomberg

Oil has been discovered at theoffshore Inam structure. Thelog data analysis tapped the oil-bearing reservoir of ten metres inthickness. The rock is composedof feldspar with high content ofclay, the source added. BPAzerbaijan began drilling theINX-2 exploration well at Inamin November 2007. BP, with a25% share, is the operator in theInam production-sharingagreement, which includes Socar50%, Knoc 20% and Shell fiveper cent.Azer-Press

Refinery progressBP is partnering with Irving Oilto bring a second oil refinery toSaint John, New Brunswick,Canada. BP and the family-owned firm are working on a $80million engineering, design andfeasibility study of the proposed$7 billion, 300,000 barrels-a-day Eider Rock refinery. RandyMcLeod, president and chiefexecutive officer of BP Canada,said his company was excitedabout the partnership.Telegraph Journal

Local officials are so enthusiasticabout Irving Oil’s latest businesspartner, you would think its

initials stood for ‘Big Payday’.Saint John mayor NormMcFarlane said: “To think littleold Saint John is thought of onthe world stage is fantastic.” He believes a strong businesspartner such as BP boosts thechances of success of a newrefinery, and will create new jobs.Business Telegraph Journal

The feasibility study, along withan environmental study andother work, will cost more than $100 million. Irving Oiland BP are also investigating the possibility of forming a joint venture to build therefinery, should they decide toproceed with it. A decision onconstruction is expected in 2009.Bloomberg News

While BP has long maintained anatural gas presence in Canada,it shed most of its oil assets in thecountry under the former chiefexecutive officer John Browne.The Irving Oil deal should beconsidered part of BP’s attemptsto ‘fill a hole’ in its NorthAmerican energy, said JosephStanislaw, adviser to both BP and Irving Oil.Globe and Mail

The Eider Rock refinery wouldproduce 300,000 barrels a day ofrefined products, all for export tothe US. It would create around5,000 temporary and 1,000permanent jobs, and is expectedto be completed by 2015. US Northeast

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Upfront

6 HORIZON MAY 2008

Rock partnership looks to boost US refiningBP AND regional refiner andmarketer Irving Oil will worktogether on the next phase ofengineering, design andfeasibility for the proposed EiderRock refinery in Saint John, NewBrunswick, Canada.

BP will contribute $40 millionas its share of funding for this stage of the study and thetwo companies will alsoinvestigate the possibility offorming a joint venture to buildthe refinery should they decide to proceed.

“This refinery project is ofgreat interest to BP because of its ideal location close to themarkets of the northeastern USwhere product supplies areincreasingly in deficit,” said IainConn, chief executive of BP’srefining and marketing business.“BP is keen to develop projectswhich enhance the energysecurity of Canada and the US.Irving Oil has a well-deservedleading reputation in refining forthe east coast.”

Irving Oil conducted initialfeasibility work and informalpublic consultation in 2006, andhas been engaged since January2007 in permitting, publicconsultation, and engineeringdesign for the proposed 300,000

barrels-a-day refinery.The refinery would be situated

close to Irving Oil’s existing300,000 barrels-a-day refineryand the existing Irving Canaportdeepwater crude oil terminalwhich receives very large crudecarriers’ oil cargoes and is located105km (65 miles) from the US border.

This next phase ofengineering, design andfeasibility work, combined with

ongoing permitting andcommunity engagementactivities, represents more than$100 million of investment overthe next 15 months.

A final investment decision isnot expected before 2009 and,although the final costings willonly be clear once all the detailedengineering and design work is completed, the refinery isexpected to cost at least $7 billion.n

Carbon Calculator leaves footprint in ChinaBP HAS won high praise fromthe children of China afterbacking them to increase energy efficiency and reducecarbon emissions.

As part of a campaign to takegreater care of the environment,the Chinese government askedits people to look at ways theycould actively reduce theircarbon footprint.

BP launched its CarbonCalculator, an interactive tool tohelp people calculate theircarbon footprint, last year inChina. And students at the YouthCentre of Shanghai Xuhui

district have since used thesoftware to calculate theirhousehold emissions andexchange energy saving tips.

The tool has attracted anincreasing number of schoolsand students. Since its launch,more than 30,000 students from51 schools have used the CarbonCalculator to establish theircarbon footprints and find waysto reduce them.

“We are proud of theseachievements and we are sograteful to BP, which granted usthe right to use their CarbonCalculator for free,” said Ye Ying,

deputy director of ShanghaiXuhui Youth Centre.

“We will continue to track our carbon footprints along thegreen curves to reach greaterachievements.”

Following the students’ initial carbon measurements, the centre offered workshops and seminars to exchange energy efficiency experiencesamong schools, students andtheir parents.

The ‘greenest’ schools werealso given awards as part of the innovative knowledge-sharing programme.n

LETTERSI (and the Norwegianroyal family, I guess)were a bit surprised to

learn that Norway is a republicformed on 26 January 1950 as stated in the April 2008 issue of Horizon (‘Our friend in the north’).This date is probably more familiar to your Indian readers.Norway is a constitutional monarchy formed in 1905 when it separated from the union with Sweden.Jan Erik Kittilsen, exploration team leader,Stavanger, Norway

Editor writes: Thank you for your letter and pointing out ourerror. Unfortunately, due tounforeseen magazine productioncircumstances, we overlookedthis and other inaccuracies inthe article. Horizon would alsolike to point out the correctname of the developmentmarked on the map is OrmenLange, and to apologize for anyinconvenience caused.

I have just finished reading the ‘Commended photographsrevealed’ article about the Horizon 2007 photo competition(Horizon, April 2008). Could youplease advise me if there is goingto be a 2008 photo competition,and when the details will be published?Chelsea Neumann, Castrol,Brisbane, Australia

Editor writes: Thank you for your letter—we’re glad to hearyou enjoyed looking at the fantastic entries the competitionreceived last year. Rest assured there will be another Horizonphoto competition in 2008, andyou can read all about how to enter, the categories for submissions, and the judgingprocess in the July edition of the magazine.

LETTER OF THEMONTH

Send letters to: Horizon, BP, Chertsey Road, Sunbury-On-Thames,Middlesex, TW16 7LN, UnitedKingdom, or by email to:[email protected]

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MAY 2008 HORIZON 7

Sutherland is assured by fresh momentumBP’S FUTURE and the forwardagenda formed key themes at thecompany’s 99th annual generalmeeting held in London in April.

Chairman Peter Sutherlandspoke of the momentum beingcreated by chief executive TonyHayward and his team to ensuremaximum benefit is achievedfrom the “great assets and greatstrategic positions that have beencreated over the years”.

Sutherland said: “There hasbeen change within thecompany—Tony’s focus on theforward agenda will ensure thatthe company is ‘match fit’ to face the coming challenges froma market which is coming to terms with the realities of a highoil price.”

In his speech to shareholders,Hayward said: “When it comes to performance, missing rev-enues are being progressivelyrestored and we’re taking actionto reduce complexity.”

He then spoke of upstreamgrowth in exploration and pro-duction, the turnaround of thedownstream business, corporatesimplification, and realizingvalue for shareholders in alterna-tive energy.

Hayward described the for-ward agenda as a way of simplify-ing BP and fundamentally

$600 millionto kick-startAlaska gaspipelineBP AND ConocoPhillips haveagreed an initial $600 milliondeal to start-up the Alaska gas pipeline.

The pair will invest the cash in the pipeline, coined Denali,which will move around fourbillion cubic feet of natural gas a day to North Americanmarkets, to reach an openseason—a process during whicha pipeline company seekscustomers to make long-termtransportation commitments—by the end of 2010.

BP and ConocoPhillips thenintend to get federal approvaland the green light from the USNational Energy Board to pressahead with construction.

Tony Hayward, BP group chief executive, said of what willbe the largest private sectorconstruction project ever inNorth America: “This project is vital for North Americanenergy consumers and for thefuture of the Alaska oil and gasindustry. It will allow us to keep our North Slope fields in production for another 50 years. The Alaska gas pipelinewill be a historic moment and we are pleased to be workingwith ConocoPhillips to move it forward.”

The project will consist of a gastreatment plant on the NorthSlope and a large-diameterpipeline that will travel throughAlaska and into Canada throughthe Yukon Territory and BritishColumbia to Alberta, andonward to the lower 48 states of the US.

BP and ConocoPhillips willnow look for other equitypartners, including variouspipeline companies, who can addvalue to the project and helpmanage risks. n

changing the company cultureand its way of operating.

He said: “I believe we have acompelling medium-term strate-gy. But my confidence in thefuture is based on more than thenear term outlook. I fundamen-tally believe in this business and in BP.”

In conclusion, Hayward said:“One of the advantages of havinga long history is that you can get asense of perspective. Everydecade or so, BP has had to rein-vent itself. That was the case

when we lost our assets in theMiddle East, when we movedback to Alaska and the North Seain the 1970s and then again in thelate 1990s when we created themodern BP. We are in the midstof one of those periods now.

“This company has a vital roletop play in the next one hundredyears, just as it did in the previousone hundred. There is no doubtabout that. What we have to doright now is make BP perform.And that is what my team and Iintend to do.”n

US refineries focused on forward agendaIMPORTANT MILESTONEShave been reached at the TexasCity and Whiting refineries, inline with BP’s forward agenda.

At Texas City, a second pipestillwas safely and successfully com-missioned, adding more than180,000 barrels of oil a day (b/d)in production, taking the refinerynear 400,000 b/d, with full valueproduction of 460,000 b/dexpected later in the year.

In 2007 more than 18 millionworker hours were dedicated tothe renewal of the refinery,resulting in the successful recom-

missioning of seven processunits, including a completelyrenovated catalytic cracker andincreased gasoline yield.

In safety efforts, it eliminatedblow-down stacks in light hydro-carbon service, commissionednew relief systems includingflares, and invested more than287,000 hours in training.

The refinery continues tomake environmental improve-ments and, to help ensure com-pliance, is nearing completion ofan unprecedented, comprehen-sive environmental assessment.

BP chairman Peter Sutherland said the company’s forward agenda willensure it is ‘match fit’ to face the challenges high oil prices bring

The plant reduced its overall airemissions by 22%, as included inthe latest federal reporting.

At Whiting, the full heavy andsour crude processing flexibilityof the plant has been restored.Available distillation capacitynow exceeds 350,000 barrels of oil a day.

Work has been focused onreturning operations and re-starting critical units, and plansinclude upgrading the refinery toprocess more heavy Canadiancrude through a multi-billiondollar investment.n

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UPFRONT

8 HORIZON MAY 2008

Global headquarters gets top marks for safetyBP’S HEADQUARTERS in St James’s Square, London, hasbeen awarded a five star ratingfor health and safety,performance from the BritishSafety Council.

The annual audit reviewedmanagement of health and safetythrough to the implementationof associated systems in theworkplace to arrive at an overallnumerical score. This year the BPbuilding scored 95.9% comparedto 93.6% in 2007, giving thecompany’s headquarters the topaward for safety for the secondyear running.

The British Safety Council’sFive Star Health and SafetyManagement System Audit is

about measuring best practiceand ensuring organisations meetthe highest standards in healthand safety.

It provides a focus for apositive health and safety culture within an organization,setting realistic objectives andproving to employees andcustomers a commitment to bestpractice and continuousimprovement.

The audit examines riskcontrol measures and seeksevidence of a strong safetyculture by measuring separatehealth and safety criteria dividedinto five key areas of focus: safetyorganization, managementsystems, fire control systems,

measurement and controlsystems, and workplaceimplementation.

The report commended “the enthusiasm and strength ofleadership demonstrated bysenior managers and attested toby middle managers within the BP organization”.

Mark Bly, group vice presidentof safety, operations andintegrity, said: “This is acomplement to our supplypartners, including JohnsonControls and Aramark.

“It is also an encouragement tokeep working together withrenewed focus on the St James’sSquare office safety to become azero-incident workplace.”n

Mountain project peaks with ecology awardBP GEORGIA has announcedthe project winner of its sixthannual biodiversity competition.

‘Eco trail and the green gate ofMount Mkinvartsveri’ waspicked by the judges for itspromotion of eco-tourism in the country.

The main aim of the project,which was submitted by the non-governmental organization(NGO) Kazbegi MountainTourism House, is to promoteeco-tourism, establish aprofessional guide service,develop information boards inthe area, and raise awareness inthe local community to protect

biodiversity and further developeco-tourism. As winner, theproject received $17,850 onbehalf of BP and its co-venturersin Georgia.

The competition was dividedinto two main categories—thebest biodiversity project and thebest biodiversity article and videomaterial. The first categoryincluded topics like criticalecological systems and theprotection of endangeredspecies, and carried a total prizebudget of $25,000. The secondcategory, which is designed toreward print and televisionjournalists for their work in

promoting biodiversity, and aimsto promote environmentaljournalism in Georgia, had atotal budget of $1,000.

Emzar Diasanidze won the best biodiversity articlecategory for his story ‘Spagnum:A new source of wealth’, which was published in theBatumelebi newspaper.

BP Georgia and its partnershave contributed in a variety ofways to enhance localbiodiversity. To date, threeprojects have been completed,with another three ongoing aspart of a $3 millionenvironmental investmentprogramme. The projectsinclude: management of a smallgrants programme for NGOcapability-building along theBaku-Tbilisi-Ceyhan and SouthCaucasus pipeline routes;management plan for Ktsia-Tabatskuri managed reserve;Caucasian black grouse research,monitoring and conservationmanagement project; theenhancement of environmentaleducation; and conflictprevention through youth awareness. nBP Georgia is working on a number of biodiversity projects

LETTERS

I have just found your online version as a result of wanting toforward an article to a colleague. I know every person at BP locations receives a hard copy of Horizon and many, if not most, unfortunately find their way into the garbage. I would like to say this is not out of disrespect to the content andeffort but more for the perspectivethat we have too much paper and little time to digest the material. Could we rely from the most part on the electronicversion and limit the hard copy distribution as part of thegreen initiatives?Bill Maji, lead mid-tier supportengineer, Warrenville, Illinois, US

To further reduce the environmen-tal impact, I suggest Horizon bemailed without the plastic wrap to those that choose to receive the print version. Thousands ofkilograms of plastic are filling landfills every year. I did notreceive the postcard asking me to confirm continued interest inreceiving the print version, asmentioned in the April 2008 issue. Today, I will email BP distribution services to have them cancel my print version, and I would suggest others thathave internet service do likewise.Dave Thompson, retiree, Calgary, Canada

Editor writes: Thank you both for your letters. Horizontakes its environmental footprint extremely seriously and in the last year we havetaken a number of major steps toreduce it. These measures have included printing the magazine on fully recycled paper made from de-inked pulpand reducing the magazine’s distribution by around 40%. Asyou mention, an online version ofthe magazine is available to all readers at www.bp.com/horizonand to current employees athttp://horizononline.bpweb.bp.com/global.

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MAY 2008 HORIZON 9

TNK-BP joins Russianculture club

A million reasons for cross-function design

TNK-BP HAS won a top awardfor promoting Russian culture in Europe.

Named the top businesscontributor to strengtheningcultural, scientific and businessrelations between Russia andEurope, the firm was awardedthe Moscow European Prize at aceremony in March at thecapital’s Pushkin State Museumof Fine Arts.

The prize is awarded to people working in differentindustry fields making sizeablecontributions to the creation of a positive image of Russia in Europe.

Vladimir Koptev-Dvornikov of the Moscow European Club, aco-founder of the awards, saidprizes were given for “promotionof peace, cross-pollination ofcultures, and communication ofpeople” and that as well as“promoting a healthy businessclimate, the creators spotlightedpopularization of Europeanvalues in Russia”.n

A CROSS-FUNCTIONALbusiness team has set itself ademanding efficiency test—todevelop a prototype design for aretail gas station and ampmconvenience site that would costa million dollars less than theaverage build cost.

The ‘million dollar challenge’started when the team—whichcomprised members from USconvenience retail (USCR), USfuels marketing, and brand,marketing and innovation(BMI)—benchmarked regionaland national competitors andfound the average cost of a new-to-industry site was between $1.9 million and $2.9 million.With USCR’s costs higher thanthe upper limit of the range, thechallenge was on to build thesite more efficiently withoutcompromising quality.

The team, which focused on the three key areas ofconstruction, fuel offer andconvenience offer, was lead byJoe Bookout, vice president ofasset management, and Mark Murgash, designimplementation manager.

Bookout said: “We challenged

the team to embrace simplicity.We asked them to be bold and toexpedite the decision-makingprocess. In fact, most decisionswere made right on the spot,and the few that did requireadditional information orprototyping were landed in amatter of days, not weeks.”

Approved changes to previousdesigns include centering fueltanks under the canopy and

optimizing tank size with fivepumps in a single row instead offour pumps in two rows.

The revamped site will becapable of delivering the highvolume of sales ampm isaccustomed to, as well as fuelsales in line with ARCO and BPtargets. The team anticipatesthe first site to incorporate thenew design will be open forbusiness next year. n

It’s 1928, the year when the first regulartelevision programming began in theUS, Alexander Fleming revolutionizedmedicine with his discovery ofpenicillin, and it was 20 years since thefirst oil strike by the Anglo-Persian OilCompany in Persia.

NAFT, the Anglo-Persian OilCompany’s magazine, reports on a high-profile event at London’sSavoy hotel that received ampleattention from the press. No, it’s not a state visit from newly-elected US president Herbert Hoover, rather the award ceremony of the BP slogan competition.

The prize for the best slogan is a

whopping £500, or around $30,000 intoday’s money, which might explainthe impressive 115,000 entriesreceived even though, NAFT writes, thecompetition was only advertised in thepress for one day.

The winning slogan ‘The petrol that pulls with a punch’—reflecting the aggressive, male-oriented nature of fuels marketing in the ‘roaring’ 20s—came from Lieutenant Grant, serving onthe battleship Royal Oak, whose prizewas accepted on his behalf by MassaicBuist, editor of Autocar magazine.Tragically, the Royal Oak was torpedoed11 years later while anchored inScotland, killing 833 of its 1,234 crew.

All the prizes were presented by Hubert Heath Eves, an earlymanaging director of the Anglo-PersianOil Company.

In second place was the equallypunchy offering ‘You can’t improve on

it—your engine will’ from ThomasWilson of Staffordshire,UK, and, just to show that the art of rhyming was still alive and well, two differententrants came up with ‘Follow me—I use BP’ to share the third prize.

A punchy slogan for the ‘roaring’ 20s

A new lay-out of fuel pumps is one of the features of the new design

PAST TIMES MAY 1928

The winning slogan presentation party in May 1928

6-9 Upfront.qxp 28/04/2008 11:18

Group

10 HORIZON MAY 2008

Strong leadership is crucial to the success of the transformation that will enable BP to closethe performance gap on its competitors. That was the key message of the March meeting of

senior leaders in Phoenix and the company’s new leadership framework

IF THERE was one phrase that resonatedaround the room more than any other atlast month’s group leader meeting inPhoenix, US, it was “culture eats strategy

for breakfast”.The phrase, coined by Ford executive Mark

Fields, was quoted by Paul Waterman, region-al vice president, lubricants Americas, tounderscore the importance of cultural changeto BP’s future success. If the company is seri-ous about achieving the sustainable changethat is at the heart of the forward agenda thenthe way it is led must change too.

“Unless we change the way we lead the com-pany, nothing will actually change,” was thesimple message from Andy Inglis, chief execu-tive, exploration and production (E&P), whenhe and Vivienne Cox, chief executive ofAlternative Energy, introduced BP’s new lead-ership framework to 500 group leaders atthe meeting.

Group chief executive Tony Haywardhas talked of the importance ofaddressing leadership behav-iours in his forward agendaannouncements last Octoberand in townhalls at BP operationsaround the world—the evolution of those statements is the new leadership framework which takesits place at the heart of the forward agenda.

The executive team has spentconsiderable time in the past fewmonths thinking about leader-

Behavioural change is key toforward agenda

Thunder Horse deepwater Gulf of Mexicofacility online. “He’s deeply experienced atthis,” Inglis explained. “We’ve lifted sub sea kitfrom the depths of 5,000 feet [1,500 metres],kit that was never previously going to see thelight of day, pulled it up to the surface,repaired and reassembled parts and loweredit down again.

“No-one has ever done this before, and itwouldn’t have happened without Stan’s skillsand leadership.”

The new emphasis put on listening in theorganization, as well as on the giving andreceiving of honest feedback, is also funda-mental to the new BP, Inglis explained. “Youcan’t make a difference if what you’re doing,what you’re saying, isn’t being heard,” he said.“Giving and receiving honest feedback istougher. We’ve just been through a round ofappraisals in upstream, and actually it’s beentough for me as I’ve decided I’m going to bevery direct and give honest feedback.”

Cox added: “I know I’ve ducked giving hon-est feedback before, but when you actually doit, it makes a difference in terms of perform-ance. And if you do it well, people accept it.”

One of the other presenters at Phoenix,

ship across BP: the sort of people that shouldbe leaders; the behaviours they should bedemonstrating; and the culture that needs tobe built. The result is a single new leadershipframework, which replaces the number of different models previously used around the group.

Fully endorsed and now owned by the exec-utive team and all group leaders, the leader-ship framework is built around the expecta-tion that leaders will: value expertise, energizepeople, act decisively and deliver results.

“The framework includes many things thathave been BP strengths in the past, but there isalso a lot that is new,” Cox said. “As an organi-zation we have never really concentrated onexpertise, for example, and particularly depthof expertise within the business.

“Running Alternative Energy,I’ve come to understand that I

need to hire people who are deeplyspecialized in many different areas

of energy. This links into ‘ener-gize people’, too. As we bring in

new people from differentorganizations, people who comewith different skills, we have torespect their opinion, value their

expertise and energize them.“If you’ve got energized people who

have a passion for what they’re doing,then so much more becomes possible.”

Inglis pointed to the example ofStan Bond, a project managerresponsible for bringing the

‘If you’ve got energized people whohave a passion for what they do, so

much more becomes possible.’Vivienne Cox

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10-18 group.thursday.qxp 24/04/2008 17:23

The BP leadership frameworkplaces four expectations onleaders: value expertise,energize people, act decisivelyand deliver results


GROUP

12 HORIZON MAY 2008

Forward agenda programmes under wayAt the March Phoenix leadership meeting, senior leaders heard about some of themajor forward agenda programmes already making an impact across BP

Information technology and services Initiation of the Four Rs programme—Rewiringinformation technology and services (IT&S),Retooling the function, Re-engineering it andsetting it up for better sourcing strategies forResourcing. Centralization of IT&S aims to get rid ofduplication of work and to help achieve economiesof scale. An assessment of IT&S leadership isalready complete, and will continue at all employeelevels. Re-engineering of processes also under wayto eliminate waste, redundancy and reduce thenumber of systems used to run the company.

Gulf of MexicoThe Gulf of Mexico (GoM) team has started the yearwell. The Atlantis platform, which started up in thefourth quarter of last year, continues to performahead of plan with an operating efficiency of 94%.The team is making good progress on the ThunderHorse platform which remains on track to start-upbefore the end of 2008. The GoM strategicperformance unit completed its restructuring in thefirst quarter of this year, removing between one andtwo management layers and increasing theaverage span of control from five to seven layers. Inaddition, the drilling and completions and sub seaorganizations have been centralized to drivestandardization and leverage scarce resources.

Texas City refineryThe past two years have seen tremendous effortsto fully restore the Texas City refinery with areduced risk profile, and those efforts are beingaccelerated in 2008. Investment is not only beingmade in the facilities, to provide a foundation for theintegrity of the assets, but also in the humancapability around those assets—including thepersonal and process safety cultures. Last year’ssafe start-up of seven major processing units hasrecently been followed by the start-up of the largesour crude train, with two trains of the residualhydrotreater unit (RHU) to follow. The plant is alsopreparing to recommission the Alkylation unit—thelargest HF Alkylation unit in the world; therebuilding of the UU3 reformer, the120,000-barrel-a-day catalytic cracker, and the third train of theRHU, are in progress, all of which is expected tobring the plant back to full margin capability.

North America gasNorth America gas (NAG) has completed a majorreview of its overhead structure to simplify howwork gets done. In addition, decision rights in keyareas have been mapped to clarify what decisionsneed to be made and who is accountable. As aresult, both complexity and headcount have beenreduced; the strategic performance unit has takenout a general management layer—NAG now hasjust six operations managers directly controlling its20,000 wells and 20,000 miles of pipeline.

Integrated supply and tradingIST’s dramatic growth between 2001 and 2006doubled the size of its gross margin, but alsodoubled the size of the organization and its costbase over the same period of time. The past twoyears have been spent stabilizing the businessaround organization governance, compliance,reward, systems, trading supervision anddistinctive performance, and the focus now is onsimplification. Activities are underway to changethe business model in the front, middle and backoffice operations; deploying new systems andremoving overlaps and duplication. A lot of effort isgoing into greater rigour and discipline in thespending programmes—particularly in IT systemsinvestment and discretionary spending onconsulting, travel and entertainment.

Fuels value chainsThe BP fuels business has made a bold strategicmove through the creation of seven regional fuelsvalue chains (FVC) which brings together refining,trading, supply, logistics and marketing operationsunder a single regional strategy, a single FVC leaderand joined-up governance for the first time. Thisnew business model allows for far greaterintegration of decision making, performancemanagement and business interfaces as each partof the value chain now works towards shared goalsand objectives. This business transformation willunlock large-scale simplification through moreeffective strategic and resource allocation, removalof duplication, more aligned and flexible regionaldecision making, improved business behaviours,and in turn, the ability to have greater externalfocus on regional competition.

FinanceA major transformation is under way aimed atreducing the duplication associated with BP’sheritage organizations. This will result in asignificant reduction in headcount and lesscomplexity, but the levels of service offered to thebusiness will not be compromized as a result.While demand will be reduced, efficiency will beincreased on a sustainable basis. The result will bea finance function that provides managers withwhat they need to run the businesses in respect ofplanning or investment appraisal or commercialoperations or activities, but with fewer people inthe business-facing organizations.

The new leadership frameworkcomes in the form of a concisepocket-sized booklet


“WE KNOW what we need to do—now weneed to get on and deliver. Every dollar counts.Every seat counts. And we need to act now.”

This was group chief executive TonyHayward’s message to group leaders atPhoenix last month. He said also that BP had“promised a lot and not delivered very much”for several years, but pledged that the effectiveand rapid implementation of the forwardagenda would help BP by restoring revenues,tackling complexity and changing behav-iours. As a result, it is expected that the com-pany will demonstrate significant businessand financial momentum in the course of2008 and 2009, creating a platform to deliversustained performance in the longer term.

Hayward pointed to the implementation ofthe new operating management system, andexpansion initiatives to build operating capa-bility such as the projects academy, as high-lights of progress supported by establishedprogrammes. Changes to the integrated sup-ply and trading functionand the North America

MAY 2008 HORIZON 13

BP has been a ‘serial under-performer’ for the past fewyears, group chief executive Tony Hayward told the Phoenixmeeting. But early progress with the new forward agendaindicates that this situation is set to change

Closing theperformance gap

Keith Casey, business unit leader at TexasCity refinery, was singled out as someone whoacts decisively, leading a team that is getting abusiness back on its feet while juggling ademanding set of priorities.

“It’s very easy to set your priorities, but actu-ally taking tough decisions and seeing themthrough is the hard part,” Inglis said. “That’swhat Keith is doing.”

Cox made the point that Acting Decisivelymeans doing what’s best “not for my business,

not for my strategic per-formance unit, but actually

for BP.” It was a theme takenup by Iain Conn, chief execu-

tive of refining and marketing.“It is deeply important to

understand that if we don’t have abehaviour of collaboration, with all ofus pulling in the same direction, wewill fail,” he said.

Delivering Results would appearto be a self-evident component of any leadership behaviours, but itsappearance in the new frameworkis something of a departure for BP.Two areas are particularly new to

the organization.“Continuous improvement is a big shift

from where we’ve been in the past,” said Cox. “It’s not about the big steps, the big deals.It’s about the continual development of the business.”

“Competitive benchmarking is also vital,”she added. “One of my frustrations about BP is that I spend all my time internally focused,when it’s the people outside that we’re tryingto beat. What energizes me is knowing where we sit competitively, being honestabout it, and then working out how to beat the competition.”

Group leaders have been asked to take thenew leadership framework back to their ownparts of the business and roll it out throughtheir teams as a matter of urgency. The aim isto embed the framework in all key peopleprocesses during the course of 2008—assess-ment and recruitment, performance manage-ment and reward, talent management, andleadership development.

“The executive team discussed at lengthwhether this should be an enduring frame-work that would last for the next 10or 15 years,or whether it should be more short term to seeus through this particular period of greatchange,” said Inglis. “Having looked at the bestpractice in other organizations, the consensusview is that we should review the frameworkafter three or four years, so that we can shiftthings according to where we are then.” n

gas strategic performance unit, as well as thecreation of fuels value chains and significanttransformations in the finance and digitalcommunications technology functions, not tomention significant recent cuts in senior man-agement, demonstrate that major activities toreduce complexity are already advancing.And the process of restoring revenues is underway thanks to upstream and downstreamassets coming online (see panel on page 11).

So how does all this come together to beginto close the performance gap between BP andits competitors? “Broadly speaking there are acouple of billion dollars with refineries such asWhiting and Texas City coming back to fullcapacity, a couple of billion more with200,000 barrels a day of new productionwhen Thunder Horse and Atlantis and awhole raft of other projects start up, and threeto four billion dollars from cost savings,”Hayward said.

The urgency of the challenge was reflectedby the external guest speaker Neil Perry, oiland gas analyst at US investment bankMorgan Stanley, who explained at length thefinancial markets’ view of BP’s recent under-performance. Against a background of funda-mental industry change, he said, BP has failedconsistently on upstream project delivery anddownstream reliability. He added, however,that the organization was “sitting on a gold-mine” of assets that could help it close the gapon competitors.

“There are three things you need to do,” hesaid. “One: recognize where you are. Two:respond by defining your role and closing thegap in operating performance with the com-petition. And thirdly: above all, do what yousay you’re going to do.” Success in each areawould see the trust of the market return veryswiftly. “The market wants control, and itwants a ‘logic for growth’,” he concluded.

And the penalty for failure? “Very simple,”he said. “BP will not exist in four to five yearstime in its current form.” n

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GROUP

14 HORIZON MAY 2008

ple strong and has a systematic three-yearprogramme covering BP’s key sites. Whereneeds are identified, a corrective action plan isagreed with the site, and overall progress onaction closure is reviewed by executive man-agement and the BP Board. “We seek formalindependent feedback from each of the busi-ness units at the end of an audit,” says JimO’Brien, vice president of S&O audit.

“Overall we have received a rating of 4.2 outof a possible maximum score of 5.0. Althoughthis is positive, we continue to evaluate everyopportunity to improve,” O’Brien explains.“While rigorous and comprehensive, we arestriving to integrate good auditing as part ofthe fabric of sustainable safe, reliable and effi-cient operations. And the businesses agree. Itis better to detect gaps and put plans in placeto reduce the risk than to deal with the conse-quences of leaving a risk insufficiently man-aged.”

While there has been an initial focus ongroup-wide standards and systems, thelonger-term goal is to build BP’s safety andoperations capability at the local level. Theoperating management system is a core ele-ment of BP’s forward agenda, providing a con-sistent ‘BP way’ of managing operating risks

SINCE THE fire and explosion at Texas Cityrefinery three years ago a great deal haschanged and safety performance in BP hascontinued to improve. But there is more to do.The independent panel of safety experts head-ed by former US Secretary of State JamesBaker assessed the safety management sys-tems at BP’s five US refineries and the compa-ny’s corporate safety culture. They challengedBP to become industry leaders in process safe-ty and advised that improvements should beled from the top.

“The time and effort invested by our execu-tive management in leading the safety andoperations agenda has been crucial in movingus forward”, says Steve Flynn, BP’s vice presi-dent of health, safety, security and environ-ment. “A good example is the formation of thegroup operations risk committee [GORC].Here group chief executive Tony Hayward,together with the chief executive of each of thesegments, the group vice president of safetyand operations [S&O] and the group head ofengineering, come together for several hourseach month to review performance, progressand future plans.” Executives are also spend-ing more time in the business and are leadingby example—for instance, by attending BP’soperations academy.

“Since the Baker panel report, progress hasbeen ongoing against each of the panel’s rec-ommendations,” says Flynn. “The highest pri-ority items for operations are set out in a sixpoint plan which deals with the most immediate issues. This has seen the removalof hundreds of temporary buildings frompotentially hazardous areas. It has also closedmany outstanding actions from past auditsthanks to a huge effort by our operationsteams and engineers.”

Plans have been developed to tackle risks ona prioritized basis, involving activities such asnew buildings and pipeline replacement.“Our operations teams are looking to improvebusiness as well as safety as they progress theirplans,” Flynn adds.

A good example is the Wytch Farm oil fieldin the UK. Here, the six point plan focusedattention on replacing part of a pipeline sys-tem which runs through an area of environ-mental significance. It also highlighted theneed to update many of the existing buildingson the site. To ensure the greatest businessvalue, changes were reviewed in line with thelatest best practice in operations manage-ment. The completion of a new control roomand replacement control system for example,has created a new and modern facility which isexpected to increase production by three percent per year.

Taking the bullby the hornsIt’s the number one priority inBP’s forward agenda, so how isthe company progressing on itsjourney towards safe andreliable operations?

At the heart of these changes is a renewedemphasis on process safety. “At its most basic,process safety is all about keeping our prod-ucts in the pipelines where they belong,”explains Deb Grubbe, vice president forprocess safety in refining and marketing.“Although this may seem obvious, everyonehas a part to play—employees and contrac-tors—as well as management and supportingfunctions. Getting this right is fundamental tovirtually everything we do.”

The S&O function has been a key enabler ofchange over the past three years. S&O bringstogether technical functions like engineeringand health, safety, security and environment,and also includes an independent auditgroup. The audit group is now about 80 peo-


MAY 2008 HORIZON 15

and driving continuous improvement at thelocal site level. Building the required safetyand operations capability has resulted in theintroduction of an operations academy andalso the operating essentials (OE) programmefor front line leaders. This has been piloted at anumber of sites (see sidebar). “I think we havetaken the bull by the horns,” says Paul Arnold,safety representative at Kwinana refinery,Australia, one of the pilot sites for the safetyprogramme. “People walking in can see we areaddressing the safety and operations issues,”adds Thys Heyns, Kwinana strategic perform-ance unit leader. “These are things our peoplerecognize as important and want to get right.”

Those working to improve safety are clearabout the benefits. Eric Jacobsen, offshoreinstallation manager and Azerbaijan operat-ing essentials representative, previouslyworked on an operating essentials pilot pro-gramme in Angola. “My advice for other sites,based on our experience in Angola, is to intro-duce operating essentials as soon as possible,”says Jacobsen “The benefits surprised a lot ofpeople. Importantly, support from the seniorleadership team means that people know thisis a change in behaviour and ways of workingthat is here to stay.”n

TRAINING FOR SAFER OPERATIONS

“OE is about building operating capacity at thefront line,” Bruyere says. “OE is aimed at first andsecond level leaders or supervisors, and is focusedon exploration and production sites, and refineriesand chemical sites.”

OE consists of a suite of modules that coversboth people and technical skills. The programmeconsists of up to 12 days in the classroom togetherwith up to 24 hours of online learning. It is expectedthat a typical site will take two years to go throughmost of the modules. Roll out of the programme isbeing prioritized at each site depending on the localchallenges and the previous training of thoseworking there, meaning the programme is alignedwith the site’s priorities.

An example of this occured in Angola, where theprogramme included a multicultural operationsmodule focusing on the importance of getting themost from a diverse operations team. This helpedthe individuals identify the working culture theywant to create and the general behaviours that needto change to get there, along with the top threebehaviours that would make the biggest impact onsafety and work practices.

One part of OE that has resonated with thoseattending the training is its momentum. “There is a real understanding that if we are going to do itthen we are going to do it right,” says TanyaNewton, safety representative at BP’s Kwinanaoperation. “The site is really changing and nobodycan say that we are in the same place that we were12 months ago.”

However, attending the programme is not the endof the process. After the training is complete, thoseinvolved are encouraged to take part in a smallproject where they can apply their learning,enabling them to engage in continuousimprovement and embed the learning within them.“It is more than just standard classroom training,”says Bruyere. “People traditionally tend to take partin training, then they are busy and so never practicewhat they have learned. But in OE, they areencouraged to apply their learning in their day-to-day work environment so they and the business cansee the benefits.”

ONE OF the key factors in changing behaviour andcreating a culture of safety is engaging employeesat all levels. BP has started three programmes tobuild operations capability and support theimplementation of the operating managementsystem (OMS). The largest one, operatingessentials (OE), is aimed at first level leaders.According to Thys Heyns, Kwinana strategicperformance unit leader, OE has allowed a safetydialogue to develop and resulted in the setting up offorums across functional and hierarchicalboundaries, allowing employees to talk about issuesindependently of their line manager. “It is amazingwhat we can get out of these discussions,” he says.

The overall programme aims to bring OMS to life.“OE is more than just a training programme,” saysUrbain Bruyere, OE project manager. “It operateslike a site intervention.The implementation teamworks with the site management team toimplement the programme in a way that supportsthe delivery of the site’s objectives.”

“The idea behind this is about bringing the realityof the operation into the discussion and delivering aprogramme that will assist the site,” says Bruyere.“This is about creating a catalyst for siteimprovement.”

BP has long had a health, safety and environment (HSE) management system called‘getting HSE right’. Although this has worked wellfor environmental safety and behavioural safetyperformance, when attempting to implementprocess safety the going has been tough. BPtherefore took the decision to spend 18 months re-engineering and redesigning that system,creating the OMS and the associated capability programmes.

The OMS will be embedded with the support ofthese programmes: OE; the operations academy, apartnership between BP and the MassachusettsInstitute of Technology (MIT) targeted at siteleaders; and the executive operations programme,which is also delivered in partnership with MIT.

Although the learning is designed to target threedifferent audiences, each is designed to support theother. In previous training programmes the targetaudience might have been chosen in isolation toother areas of the business. However, in order tocreate the necessary improvement in safety andoperations performance, programme participantsneed the support of management to give them theability to put what they have learned into practice.These three development programmes are thereforebeing implemented in parallel across all levels inorder to provide alignment and create themomentum for improvement. The initial target forOE is to get a total of 650 first level leaders startedon the programme in 2008.


16 HORIZON MAY 2008

GROUP

BP’S RECORD on safety and oil spills in thepast two years was its best ever, according tofigures released in the BP SustainabilityReport 2007. The report shows that since1999, fatality, injury and spill rates have allimproved by around two thirds.

The report also maps out the scale of theprogrammes under way to improve safety and operations performance further, includ-ing $6 billion spent on integrity managementin 2007.

In his introduction to the report, groupchief executive Tony Hayward says: “We continue to aspire to our ultimate goal of ‘noaccidents, no harm to people, no damage tothe environment’.”

Last year, BP had 167 injury cases requiringdays away from work, compared with 188 in2006 and 305 in 2005. There were 1,060recordable injuries, just under last year’s fig-ure and significantly lower than the 2005 totalof 1,471.

There were seven fatalities among employ-ees and contractors, the same number as in2006. This compares with 20 in 2003, 11 in2004 and 27 in 2005, the year of the explosionand fire at Texas City refinery.

The number of oil spills of one barrel ormore also fell—from 417 in 2006 to 340 lastyear. The volume of oil spilled was around 1million litres (260,000 gallons), less than halfthe 2006 volume and less than a quarter of the2005 figure.

The improving figures come as investmentcontinues: the ‘six-point plan’, which tacklesimmediate priorities for process safety such asmoving portable buildings from high riskareas and implementing standards on integri-ty and control-of-work, is expected to belargely completed by the end of 2009.

The operating management system,designed to reduce risks and improve thequality of operations for the long term, is nowbeing implemented at 12 of the largest opera-tions, including five US refineries, with imple-mentation throughout BP due to have startedby the end of 2010.

A range of training and development programmes have been launched for safety and operations, including: operatingessentials, for managers of front-line staff; the Operations Academy, for senior opera-tions and safety leaders; and an executiveoperations programme for senior business leaders who have accountability for multipleoperations.

The Group Operations Risk Committee,which oversees process safety managementand reviews performance, met 14 times in 2007.

The Sustainability Report also shows thatBP’soperational greenhouse gas (GHG) emis-sions fell to 63.5 million tonnes of carbondioxide equivalent (Mte) in 2007, from64.4Mte in 2006. In 2007, increasing activitylevels within BP Shipping, the start-up of theTexas City refinery and new oil and gas pro-duction, primarily in Angola, Algeria andAzerbaijan, were more than compensated forby the Coryton, UK, refinery divestment,some GHG reporting protocol changes andthe delivery of emissions reductions. Around0.6Mte of sustainable GHG emissions reduc-tions were delivered in 2007. n

2007 was a record year for sustainable operations at BP, with the lowest ever number of fatalities and injuries andcontinuing investment in safety, writes David Vigar

A better record on safety and environment

GREENER WAYS TO VIEW THE SUSTAINABILITY REPORT

them against BP’s internal group risk approach aswell as interest shown in them externally.

The report is aligned with key external standardsincluding the guidelines of the Global ReportingInitiative (GRI).

In his introduction to the report, Tony Haywardsays: “I am very conscious of the need to manageBP’s business in a way that contributes to our long-term sustainability and that of the society andenvironment around us. Today, I believe that the bestpreparation for our sustainability is to focus on threepriorities: safety, people and performance. Safety is atthe heart of responsibility. Every action we takedepends on our people. And performance provides us with the opportunity to make a broadercontribution to society.”

The BP Sustainability Report is being published innew formats this year in response to feedback fromreaders. A PDF format report can be downloaded fromwww.bp.com/sustainabilityreport, this being thepreferred approach among many in specialistaudiences such as academics, investors and non-governmental organizations. The shorter, printed, BPSustainability Review 2007 contains a selection ofhighlights from the PDF report. Meanwhile onlinereporting at bp.com covers a wider set of issues andreports on them in more depth.

The report covers performance in key non-financial areas such as safety, employees, theenvironment and development. It reports on issuesthat are judged to be the most important, or‘material’, according to a process which assesses


REPORT BYVARTAN AMADOUNY

MAY 2008 HORIZON 17

Milestones

BP HAS built its reputation for excellence onits ability to discover and develop gas and oilassets in frontier regions. This history ofexcellence began in Persia with the discoveryand development of the first commercial oilfield in the Middle East.

In 1901 an English entrepreneur, WilliamKnox D’Arcy, secured an oil concession fromthe Shah of Persia. Encouraged to invest inPersian oil by favourable geological reports,drilling began in 1902 and lurched through asequence of failures and financial crises untilan astonishing moment in 1908, when thefirst oil reservoir in Persia and the MiddleEast was discovered at 360 metres (1,180feet) below the surface. Barely a monthbefore, D’Arcy and his partners, UK oilcompany Burmah Oil, began to run out ofmoney and told the man in charge of the

expedition, George Reynolds, that if no oilwas found at a depth of 460–490 metres(1,500-1,600 feet), he was to pack up andreturn home.

The southwest of Persia at the time was afrontier region in every sense of the term.Remote from Tehran politically andgeographically, Ahwaz was its only significanttown. There were few proper roads, norailways, and the population was largelyilliterate and vulnerable to a wide range ofillness and disease. The landscape, with itsmixture of mountain and plain, producedfrigid winters, rainy seasons with swollenrivers, and summers when temperaturesrarely dipped below 38°C (100°F) in theshade. The semi-nomadic Bakhtiari tribesdominated the region, and were a law untothemselves. Into this environment stepped adiverse group of geologists, drillers,blacksmiths and labourers. They wereBritish, Canadian, American, Polish, Indianand Persian, hauling the components ofindustrial plant used in petroleumexploration across rivers and mountaintracks, mostly by mule and cart, and drillingfor oil 24 hours a day, year in, year out.

At the head of the exploration team wasReynolds, a self-taught geologist and drillingengineer who graduated from the RoyalIndian Engineering College in Surrey, UK,and worked with Royal Dutch in Sumatra

First oilcentenaryThe pioneers of the Persianfrontier

A LATE STARTER

THE MODERN petroleum industry began in the US,the Russian Empire and Asia in the second half ofthe 19th century, a period of rapid economicgrowth in Europe, the US and Japan. Oil wasemerging as a cheap and superior form of fuel towood and coal, and fuelled the engines of thetransport revolution on road, at sea, and eventuallyin the air. When oil was discovered in Persia in1908, it was the emerging fuel of the future forhouseholds, industry and the military.

BP was a late starter in the industry but had firstmover advantage in the Middle East through itsPersian concession. William Knox D’Arcy wasencouraged to invest in Persia by the Britishgeologist Boverton Redwood, a passionateadvocate of the petroleum industry and close to theFirst Lord of the Admiralty, Jackie Fisher, whenRoyal Navy ships experimented with oil-firedengines in 1903. Persia, followed by Iraq in 1923,became the main oil producing area in the MiddleEast before the discovery of the Arabian peninsulaoil fields in the 1930s.

For the Anglo-Persian Oil Company, thediscovery of Masjid-i-Suleiman did not lead toovernight riches. The high capital costs ofdeveloping the pipeline and the refinery at Abadanalmost bankrupted the firm and led directly to themajority shareholding being taken by the Britishgovernment in 1914.

Supply carts crossing the Tembi river on the road toBP’s pioneering Masjid-i-Suleiman oil field, Persia

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MILESTONES

18 HORIZON MAY 2008

before heading to Persia. He assembled ateam of experienced Canadian and Polishdrillers and machinists, as the petroleumindustry had been going in Canada andPoland since the 19th century. They were arough bunch of argumentative but dedicatedmen, complaining about each other’scompany as well as the food they had to eat,most of which came in cans from thesuppliers to the armed forces. Conditions onthe frontier were not helped by the severity ofthe climate and the vulnerability of men toheatstroke, disease and accident. Drilling,went on for 24 hours a day; it was hot andoccasionally dangerous work. Although thecompany provided medical care initially byan Indian doctor called Raja Desai, it was notuntil the arrival of Morris Young in 1907 thata significant change took place. Young, bornin Palestine, had graduated from GlasgowUniversity Medical School. He wasresponsible for improving safety on the rigs,supplying protective gloves and clothing. Asimportant as his medical duties, Young—through his treatment of local people, and inparticular the son of a local Bakhtiari king—helped improve relations with the tribe.

From the outset of exploration in 1902,Reynolds had negotiated with the Bakhtiarifor the right to use their land and recruit menas labourers. The Bakhtiari agreed to providesecurity, but factional disputes meant that

armed robbery was common until 1908 whenLieutenant-Colonel Arnold Wilson arrivedwith a detachment of Indian Army troops.The demonstration of Young’s skills and hisquiet diplomacy led to a new security dealwith the Bakhtiari and eventually the Indiantroops were withdrawn.

Sleeping near Well No 1, Wilson wasawoken at 4am on 26 May, as a sound likethunder heralded the first oil strike gushing25 metres (80 feet) into the morning sky. Inthe pandemonium that followed, legend hasit that Wilson leapt onto his horse, and rodeto Ahwaz to telegraph the Foreign Office inLondon. D’Arcy was informed later that nightwhilst dining with his family. The followingyear, the Anglo-Persian Oil Company wasformed, and with it the story of BP began.D’Arcy sold the concession rights to the newcompany in exchange for a shareholding inBurmah Oil worth around $10 million intoday’s money, and a symbolic 200 shares inAnglo-Persian. Two years later, Reynolds, aman of action impatient with companybureaucracy, left by mutual consent.

The combination of capital, science, andphysical endurance on the frontier unlockedthe oil riches of the Middle East. The regionbecame the premier source of the world’s oil,and Great Britain, previously unknown in theworld of oil, home to the headquarters of oneof the world’s most powerful businesses. n

This early well at Chia Surkh, Persia, circa 1903, proved unsuccessful

George Reynolds (left), who led the earlyexploration effort in Persia and his employer,English entrepreneur William Knox d’Arcy

A geologist on horseback, believed to be GeorgeReynolds, leads a geological survey


REPORT BYDAVID SHARIATMADARI

Working life

MAY 2008 HORIZON 19

WE’RE ALL doing our bit to fight climatechange. For some, it’s a question of savingenergy around the house; for others, it’s abouttaking holidays closer to home or car pooling.There are only a few kinds of people who havethe opportunity to make a bigger impact—among them politicians, campaigners andscientists.

Bill Senior, who works in AlternativeEnergy and is one of BP’s experts on carboncapture and storage, falls into the lastcategory. His work has influenced the Groupof Eight (G8) leaders and the governments ofdeveloping countries and he has contributedto the work of a group that was rewarded witha Nobel prize for its “efforts to build up anddisseminate greater knowledge about man-made climate change, and to lay thefoundations for the measures that are neededto counteract such change.”

A member of BP staff for 31 years, Seniorstarted as a geologist in the UK North Sea. Itwasn’t until the late 1990s that he began toget interested in climate change, havingmoved from geology to explorationmanagement and business development. Henotes with interest that the first UK gas fieldshe worked on are now candidates for carbondioxide (CO2) storage—30 years on.

“It caught my attention just as BP itselfstarted to look at limiting its emissions. Thecompany introduced an internal emissionstrading scheme in 1998. I took some of theresponsibility for emissions trading withinmy business unit,” Senior says.

Senior was posted to Singapore in 2000,where one of the challenges he faced wasdealing with some gas fields with very highCO2 emissions acquired by the companythrough the takeover of US oil companyARCO. “When we became involved wewanted to work on reducing the emissions sowe started looking at carbon capture andstorage [CCS],” he says. “It was quite earlydays really, and CCS was a new topic then.”

CCS is the label given to any process thatlimits CO2 emissions by trapping the carbon contained in fossil fuels so it isn’treleased into the atmosphere. “The idea is to capture the CO2, to compress it and injectit for long term disposal in geologicalformations such as disused oil and gas

reservoirs and saline aquifers.”There are two approaches to CCS,

depending on the point that the CO2 isharvested. Post-combustion capture happens after the fossil fuel has been burnt—CO2 is one of the components of the flue gasand can be stripped out using a solvent. Pre-combustion capture involves separatingthe hydrogen from the CO2 and using the hydrogen rather than carbon to generate power.

Whichever method is used, says Senior, theadvantage of CCS is that it allows a companylike BP to meet two key objectives—one ofcontinuing to supply affordable and secureenergy primarily through fossil fuels, andanother by actually reducing greenhouse gasemissions and mitigating climate change.This will provide exciting new businessopportunities for BP.

In fact, the company has been involved in arange of ‘learning by doing’ CCS activitiessince the late-1990s. Among others, theseinclude the BP-operated CO2 capture andinjection project at its In Salah gas field inAlgeria; the CO2 Capture Project (CCP), an

international partnership of energycompanies investigating technologies toreduce the cost of capture; and the CarbonMitigation Initiative with US auto makerFord and Princeton University, aimed atfinding sustainable solutions to climatechange. Last year, BP also formed theHydrogen Energy joint venture withAustralian mining company Rio Tinto toundertake ‘decarbonized fuel’ projects whichinclude CCS.

So how far away is widespread use of CCS?“Well technically and technologically webelieve all the components are ready—whichis not to say they can’t be improved—butreally the policy and regulatory framework islacking,” says Senior . “ CCS needs fiscalsupport to make it viable and regulatorysupport to help reassure consumers that it’s asafe and worthwhile process.”

So the technology needs a little help fromthe lawmakers before it can live up to itspotential—and it was this that made Seniorrealize the importance of sharing hisknowledge with a wider audience.

“In 2003 the Intergovernmental Panel onClimate Change [IPCC] decided to produce a special report on CCS technology. Theyconvened a meeting of experts and BPnominated me and Mike Wilkinson to join.At the time I was the technology programmemanager for CCS. “For an IPCC report, whichis intended to inform policymakers, you getbetween 150 and 200 authors who sit downto write a consensus view based on peerreviewed literature.”

As you would expect, getting 150 people toagree to a common line wasn’t easy. “Well it’sa fairly drawn out process, a little bitfrustrating at times but rewarding in terms of the opportunity to work with experts in thefield and inform global policy makers,” saysSenior. “We basically delivered what wasrecognized as the definitive assessment of thetechnology.”

The work paid off. “I think we had animpact,” he adds. “The policymakers are nowvery much more aware of CCS’s role and it’san awareness that has grown really veryrapidly.” In 2007, the IPCC, together with AlGore, was awarded the Nobel peace prize for its efforts. n

Going undergroundBill Senior has helped to develop carbon capturetechnology and raise awareness of climate change

Bill Senior works in Alternative Energy and hasbeen a BP employee for 31 years

19_Working Life thursday.qxp 24/04/2008 15:58

Profile

20 HORIZON MAY 2008

THIS ISN’T fine-tuning, but going back to basics,” says Dana Deasy,recruited to overhaul BP’s informationtechnology (IT) function. “We’re liter-

ally rebuilding.”An IT professional with a track record in the

automotive, manufacturing and aerospaceindustries, Deasy is one of BP’s few externally-recruited group vice presidents. Hired fromauto maker General Motors in the US lastOctober, getting to know BP’s structure andculture has been paramount. But he is quicklymaking an impact.

His first move was to announce that allteams in the information technology andservices (IT&S) function would become a sin-gle unified and integrated organization. It sig-nalled the start of a huge transformation pro-gramme involving some 4,000 peopleworldwide. With IT now underpinning virtu-ally everything BP does from the oil rig to thefilling station, the change will ultimately affectevery part of the business.

“BP is in the middle of a massive transfor-mation,” says Deasy, who is based at BP’sLondon headquarters. “Within that, we have aIT&S organization with the potential to play acritical role in the forward agenda.

“However, historically, the IT function hasbeen highly decentralized, often doing thesame things in a variety of ways. This meanssignificant complexity, making it harder andmore expensive to support the business. So, asa first step, we needed to get everyone movingin the same direction with a clear understand-ing of what needs to be done.”

Deasy brings extensive IT leadership expe-rience from global corporations that have

gone through huge change. Joining BP justtwo weeks before the forward agenda wasannounced, he hit the ground running. First,he talked to several hundred people, both inand outside IT&S, to deeply understand howthe function works and how its customersperceive it. The results were startling.

Deasy found more than 60 IT help desks,dozens of processes for managing IT inci-dents, and a sprawling landscape of 6,100software applications that his function wasbeing asked to support. “IT users find thingscomplex and frustrating, with too many touchpoints,” Deasy adds. “Overall, I was surprisedat the level of decentralization and how oftenIT was being reinvented time and time again,

without cost-effective standardization.”Such issues are not unique to BP and

Deasy’s discoveries weren’t all bad news. “There are lots of examples of IT&S doing IT well,” Deasy emphasizes. “The highly sophis-ticated computing environment in the explo-ration and production segment is truly leading-edge and gives BP significant competitiveadvantage. We’ve also played a central role intransforming a number of the back office sys-tems for the integrated supply and tradingfunction as well as software that can predict anddetect problems before they happen in refining.

“We have a great deal of very good talent.The problem is that these people have oftenbeen deployed in support of just one business.

Dana Deasy,group vice president, information technologyand services, is leading a major transformation of the

function as part of BP’s forward agenda

A simpler,standardized

approach

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MAY 2008 HORIZON 21

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So, a key focus for us now is accessing this tal-ent, propagating it and deploying it for thebenefit of the whole organization.”

In December 2007, Deasy presented BP’sleadership with his plan for the new IT func-tion. Launched in January, the ‘4Rs’ pro-gramme maps a total reworking and standard-ization of its structures (Rewiring); technicalcapabilities (Retooling); core processes (Re-engineering), and an optimization of suppliersand contractors (Resourcing).

“We’re going back to basics in terms ofprocesses, people, how we deliver and how weget at our costs,” says Deasy. “We need to opti-mize use of our talent, free up resources andprovide innovation and new tools to meet theneeds of the business.”

Some pertinent changes have already beenintroduced, including jettisoning ‘digital com-munications technology’ as the name of thefunction last month. “We needed to go back to avery straightforward name, so we changed ourname to ‘information technology and services’,”reveals Deasy. “This is a declaration to ourselvesand the wider community about why we’re hereand what we need to be doing.”

Already, a single new process is in use formajor IT incidents that will cover all incidentsby the end of the year. Meanwhile, softwareapplications are being scrutinized to identifycandidates for elimination. The future will seeservice desks integrated worldwide—withjust one number to dial—and offer BP busi-nesses far greater transparency in terms ofservice and cost.

“We are also establishing a new enterprisesystems group, which will initially bringtogether our SAP technology, tools, talent and

processes,” Deasy explains. These core sys-tems—the foundation of BP’s IT backbone—will allow the businesses to access the rightinformation, complete transactions andaccess a single source of the truth.

“The backbone includes the core processesof our businesses, including process to pay,order to cash, production revenue accounting,finance and human resources. By consolidat-ing how we implement and run core enter-prise systems, we will provide services in themost cost effective way and with the highestquality across the group.”

Not all changes will happen silently behindthe scenes. Deasy recognizes that, at times, the

smallest things can signal a shift in BP priori-ties and ways of working. A recent example isthe new set of IT policies that are designed tosimplify their offer.

“If we eliminate duplication of hardware—like the option of more than one mobile deviceor laptop per person—we can reduce costs formaintaining IT,” Deasy says. “Right after wepresented this to the leadership they were quickto hand in extra laptops and mobile devices.”

At first glance, you wouldn’t think thesetypes of policies would make much of a differ-ence to BP. However, with more than 100,000employees and contractors relying on thecompany’s IT services and hardware to dotheir jobs, even simple policy changes can

have a profound impact.It will be a long journey, but the result will be

a streamlined IT function that will be easier towork with for BP’s businesses, IT users andservice providers. And, Deasy says, there’s ahealthy appetite for change: “There’s a senseof urgency and readiness to dig deep, replicatewhat works well, throw away what’s not need-ed and deliver our full promise.”

“Standardization, wherever possible, willgo hand-in-hand with building deep intimacywith the needs of the business. We have to fixour internal costs and operations. However,let’s not forget we exist to support the busi-ness—and our first priority is to deliver thetransformation without tipping IT over orinterrupting services.

“Ultimately, I would like to see IT become amuch simpler organization,” says Deasy. “Inthe users’ eyes, that means knowing where togo for IT services and support and receivingresponsive and timely service.

“I look forward to moving our agendabeyond headcounts, costs or fixing internalprocesses, but instead focusing on deliveringgreat projects—what we’re doing to bringinnovation to the businesses.”

If you use a computer—and who doesn’t—you are an IT user. “I want people to be able tosay: ‘When I joined BP, the tools I needed werethere, I had the right software and the author-ities to access everything I needed right fromthe start, and I knew who to call if there was aproblem,’” says Deasy.

Deasy’s vision is simple, he wants IT usersand BP’s businesses to “find us highly profes-sional, thoroughly ‘joined-up’, responsive and,above all, easy to do business with.” n

‘Standardization will go hand-in-hand with building deep intimacywith the needs of the business. ‘

20_21 Profile.qxp 24/04/2008 16:05

Refining and marketing

22 HORIZON MAY 2008

HIGH OIL prices should automaticallytranslate to high profits, but there areteams in BP thatneed to work harder tosucceed in times of $100 oil.

Air BP, a global sales and marketing business which supplies aviation fuels andlubricants to more than 700 airlines, numer-ous general aviation operators and militaryoperations, needs to pass the rising price offuel directly to its customers before adding itsown delivery costs and any profit margin.

So it is testament to the entire Air BP team’soperational expertise and negotiation skillsthat in a climate of soaring oil prices, and adeclining US dollar, it was able to achieve itsbest ever financial performance in 2007.

“Recording our best year at a time when the costs of our working capital were at arecord high was a real achievement,” says RitaGriffin, Air BP and marine fuels chief executive officer.

“All areas of our business, from safety andoperations to cash collections, performedextremely well, and in sales our success wasdriven by growth in our volumes and havingthe confidence and momentum to undertakevery difficult negotiations, particularly onpricing conditions and payment terms.”

It seems that demonstrating resistance to external pressures has become second natureto the Air BP team, which has braved a seriesof downturns in the aviation industry duringthe business’s 81 year history. Most recentlythe team has dealt with the consequences oftwo Gulf Wars, the SARS crisis, and the 9/11terrorist attacks which resulted in the bank-ruptcy of a considerable proportion of the USairline industry.

Air BP’s vice president of sales and market-

ing, Peter O’Callaghan, says: “I have been inAir BP for many years, during which we haveseen a number of highs and lows affect BP,our customers and the supply and demand forour products.

“The strength in our business is in constant-ly adapting to these challenges, looking foropportunities and areas to improve, beingcrystal clear on our competitive drivers and,against this background, nurturing a widerange of global customer relationships.”

Inline with BP’s forward agenda, the Air BPteam is currently reviewing its global portfolioto ensure the business is linked to sustainablemarkets and, significantly, to BP’s new fuelsvalue chains.

This has included reducing the number ofcountries the business operates in, and revis-ing cost structures.

“We are focusing the portfolio but growingthe business,” explains Peter Short, Air BP’schief operating officer. “In the past we havespent capital going into new areas, which hasresulted in us being the only major western oilcompany in the aviation business in China for example, and being the first downstreamfuels business in the likes of Eastern Europeand Brazil.

“Now our focus has turned more towards

Air BP team is flying high

Themes of safety, efficiency, teamwork and ‘getting things right first time’ have propelled the Air BP business

to global success, as Lucy Harvey discovers

‘The strength in our business isconstantly adapting to challenges,looking for opportunities and areas

to improve, and nurturing globalcustomer relationships.’

Peter O’Callaghan

identifying growth opportunities and invest-ments in infrastructure closer to home, there-by monetizing our existing portfolio ratherthan actively broadening our geography.

“In addition, by reducing the number of countries we operate in, we will reduce complexity in the business.

“It is also incredibly important that ourglobal strategy is aligned and integrated withthe fuels value chains, and that all business isdone for the greater good of BP.”

The investment opportunities to whichShort refers include spending money on improving pipelines and terminals in existingstrong markets, which have not previouslyreceived funding from airlines, airportauthorities or the oil industry. Major projectsof this nature have already been completed inthe UK, Germany, Dubai and Sharjah.

Team spirit:While the team has a new businessfocus, in terms of safety and performance theyare sticking to a long-standing mantra: ‘get-ting it right first time’.

“Safety is our licence to operate and it is thefirst thing we measure and track,” says TimBingham, Air BP’s technical director. “We aredealing with multi-million dollar aircraft withvolatile fuel, surrounded by a lot of airportoperations, so we are incredibly focused ongetting all of our activities right first time.”

He adds: “One of our strengths is sharingpowerful learnings from across the world andeach quarter we recognize the best globallearning experiences, most recently fromAustralia, Zambia and the US.”

In terms of teamwork, Air BP thrives onconnectivity. The whole sales team is privy toreal-time business information through u

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REFINING AND MARKETING

24 HORIZON MAY 2008

their unique tender debrief system, wheredetailed information about each deal is sharedin email format immediately after conclusion.

O’Callaghan says: “Every single deal is writ-ten up and shared with the entire global salesteam, whether it is good news or bad news. It is a system that is absolutely entrenched in Air BP.

“The beauty of it is its speed and clarity, and although it can be painful when we losesome key business, it is real and it spreads real-time competitive intelligence to sales col-leagues across the world.

“It also helps establish a foundation of global confidence and understanding.

“For us, it is just as important to recognizethat we will lose some business if the terms are not right, as it is to fight to gain and retainstrategically important business.

“Consequently, we are regularly churning airline contracts at our airports in order to optimize our returns.

“And this is where the breadth and depth of all of our customer relationships—airlines,general aviation, military, fuels and lubri-cants—is so crucial, as this provides the platform to make those difficult decisions in an open way, without damaging the long-term relationship.

“Fortunately, over the years, our successeshave far outnumbered our disappointments,and the good news is recognized and celebrat-ed globally with considerable vigour.”

Says Griffin: “One of our fundamentalstrengths is the consistent team spirit thatexists across all of our countries and functions.

“We all absolutely depend on each other.The sales guys depend upon each other to wintenders from overseas customers. In turn theydepend on the supply guys to source and moveproduct efficiently, on the technical and oper-ations guys to deliver fuel to customers safelyand efficiently, and on the finance guys to col-lect the cash and pay the bills.

“We are collecting tens of millions of dollarsa day just to keep up with our billings. We can’t miss a day and that comes back to gettingit right first time.

“The behaviours we need from our peopleare so important, but they do not come auto-matically. We go to a lot of trouble to ensure webuild personal relationships and commit-ments through face-to-face contact and theright behaviours, because a solid team is thefoundation for a profitable business.” n

The Air BP team thrives on its global connectivity and its mantra of ‘getting it right first time’

‘One of our fundamental strengthsis the consistent team spirit thatexists across all of our countries and functions. We all absolutely

depend on each other.’ Rita Griffin

22-31 R&M.qxp 25/04/2008 09:53

MAY 2008 HORIZON 25

AS WORK continues on a two-year project todigitize BP’s extensive video library, a newDVD boxset featuring archive rally footagefrom the 1970s and 1980s has been madeavailable to the public.

The Castrol Classics set features hours of racing action, as well as interviews withsome of the sport’s top drivers includingBriton Roger Clarke, Finnish drivers AriVatanen and Hannu Mikkola, and Swede Stig Blomqvist.

Before now this footage had only been available to those racing fanatics who person-ally contacted BP’s video library, based atSouthwark Street, London, UK. Now theboxsetcan be purchased for $40 from websitewww.motorsportdvd.com.

“The set features eight famous titles shot in the 1970s and 1980s,” says Steve Saint,managing director of bhp group, the inde-pendent production company responsible fordigitally remastering the films and producingthe DVDs for BP. “We hope by giving them this new lease of life we can get them to a new audience.”

The eight films included in the boxset are:Flying Finns, a film examining the tech-niques of Hannu Mikkola and Timo Makinenat the 1968 Thousand Lakes Rally; Stages toVictory featuring the 1976 Castrol/AutosportRally Championship; Appointment in Penhafeaturing the 1977 Rallye de Portugal; A Taleof Two Rallies which records the 1979 SanRemo and the 1979 Lombard RAC rallies;Chariots in the Sun featuring the 1981Acropolis Rally in Greece; Twilight Zone withdramatic footage of Hannu Mikkola compet-ing in the 1982 Swedish Rally; A Place in theSun featuring the 1983 Tour de Corse inCorsica; and Local Heroes, a report on theThousand Lakes Rally in Finland with localheroes Hannu Mikkola, Markku Alén and AriVatanen fighting to the finish.

Film gems: The BP video library holds more than 15,000 videos and film reels intotal. With rare footage dating back to 1915,the archive includes the Oscar winning short film Giuseppina, television commer-cials, award winning test films produced by BP, and a series entitled Oil Review,which has a wide variety of oil-related and

New audiences for Castrol classicsClassic footage of rallying in the 1970s and 1980s has been digitally remastered and madeavailable for a global audience by BP’s video library, as Lucy Harvey reports

everyday footage from the 1950s. Video material is available free to BP

employees, and for a fee to external video programme makers. Work to digitize largeparts of the archive to secure the collectionand provide easy access to the archive for BPemployees worldwide is expected to be fin-ished later this year.

Television commissioning editor StevenCroston says: “The BP video library holdstapes and films with footage going back morethan 80 years, but until two years ago thelibrary was outsourced. The collection of15,500 tapes were poorly stored, some werebeginning to degrade, and footage could onlybe viewed by visiting the library. This was a

pity because we own some real gems, some ofwhich are of global historical importance.

“The collection—which has a replacementvalue of $250m—is really only of value if peo-ple can view it. As such, we are now in theprocess of digitizing the content. By July wewill have digitized 500 hours of fully cata-logued film footage, which will be available topreview and download online.” nFor more information on the BP videolibrary, visit www.bpvideolibrary.com

‘We hope by giving [the films] this new lease of life we can get

them to a new audience.’Steve Saint

Archive footage of racing in the 1970s and 1980s isfeatured in the Castrol Classics boxset, madeavailable by BP’s video library, based in the UK

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26 HORIZON MAY 2008

IT IS the biggest, most technologicallyadvanced single-train purified terephthalicacid (PTA) unit in the world, with the lowest operating costs and emissions and thehighest levels of energy efficiency. Perhapsmost importantly, BP’s Zhuhai 2 plant atGuangdong in southern China is now fullyoperational—on time and under budget—and running at virtually full capacity, reinforc-ing the company’s leadership position in whatis by far the world’s largest PTA market.

More than 16 million tonnes of PTA wereused in China during 2007—half the world-wide total. This represents an increase of 19% for the year, against global growth of justeight per cent, with demand being fuelledprincipally by the country’s rapidly develop-ing textiles industry and its craving for ever-increasing amounts of the polyester that PTAhelps produce.

The business rationale for a new PTA unitin China, therefore, is clear. But Zhuhai 2, the latest development in a successful part-nership with the Fuhua Group, is a triumphfor BP on many more levels besides. Its con-struction involved some of the lowest capitalcosts in the industry, for a start, thanks to aproactive local procurement policy. Morethan 50% of equipment and materials weresourced from the Chinese mainland.

Annual PTA production capacity at theZhuhai complex was also doubled from500,000 tonnes to one million tonnes fromthe second unit’s first day on-line, decisivelyreinforcing BP’s status as the world’s leadingproducer of a raw material that is also used tomake bottles, packaging and film products.With Zhuhai 2, BP will be able to serve EastChina around Shanghai, Zhejiang andJiangsu with a complex distribution and sup-ply chain system to deliver PTA to customers(see panel on page 27).

But it is probably in the environmentalarena where the new unit has made the most significant impact. Thanks to BP’s revo-lutionary Scale Optimized X (SOX) technolo-gy, which enables previously discarded or

destroyed process streams to be recycled,Zhuhai 2 can boast 65% lower greenhouse gasemissions, a 40% reduction in solid waste,and a massive 75% decrease in liquid wastedischarge. For every seven units of processwater consumed at a typical PTA plant,Zhuhai 2 uses just one.

The groundbreaking engineering designalso ensures that the unit occupies a plot justhalf the size of its older sister, despite a totalproduction capacity that is double. And, as ifthat wasn’t enough, Zhuhai 2 is also self-gen-erating in terms of electricity.

“Most PTA plants use a lot of electricity, butZhuhai 2 harnesses the steam and gas pro-duced during the oxidation process and runsthem through two separate turbines,” saysSkip McQuillin, BP’s PTA process technologymanager. “The result is that Zhuhai 2 is a netproducer of electricity, so it can also help offsetpower usage at Zhuhai 1.

“It is fantastic technology, which we are currently in the process of patenting. SOXcould easily be utilized if additional new PTAplants are built anywhere in the world. We arealready working on the next improved versionof the technology. And, theoretically, certaincomponents of the technology can be utilizedin retrofit improvements or expansion ofexisting PTA assets.”

One clear benefit of the new technology isthe high level of automation, which has keptstaffing increases and training costs to a minimum. Only 40 more employees, all ofthem local Chinese, have had to be taken on at Zhuhai to operate the new unit—anincrease of just 22% for the complex overall.They spent nine months or so in training

before production began in December 2007,using a simulator to mimic real-life situationsto ensure that operating problems could bekept to a minimum.

“All in all we are extremely happy with the first couple of months,” enthuses DanLeonardi, BP Zhuhai’s works general manag-er. “It’s been a steep learning curve in the twomonths since we went live and, as you wouldexpect, we’ve had a few mechanical issues thathave led to two sets of minor modifications tothe process. But we are already up to 95%capacity, and we have proved that we canoperate the plant safely as well as efficiently.”

He adds: “There’s been a lot of hard work by our Zhuhai team in getting to thispoint. But I also have to pay tribute to the support we’ve received from BP’s global PTA team… not just the R&D [research anddevelopment] guys, but also the process fore-men and operating staff from other sites such as Kuantan and Cooper River, who have worked with us before and during thestart-up period. Their advice and guidancehas been crucial.” n

A new star rises in the east and shinesBP is already the world’s largest producer of purifiedterephthalic acid, but the opening of a new unit in China is helping it keep up with rapidly growing demand

‘We are extremely happy with thefirst couple of months. We haveproved we can operate the plant

safely as well as efficiently.’ Dan Leonardi

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MAY 2008 HORIZON 27

TRANSPORTATION NETWORK

Regional solution todistribution challengeBP is the largest producer of purified terephthalicacid in the world, and the expansion of its plant atZhuhai allows it to serve a large customer base inEast China in addition to a customer base in SouthChina. Geographically, however, the process ofactually getting the product to those customershas presented something of a challenge: whilethey are nearly all situated around Shanghai,Zhejiang and Jiangsu, a major economic andindustrial region in East China, Zhuhai itself islocated in Guangdong in the south.

BP’s solution is a network of regionaldistribution centres and a complex supply-chainmanagement model.

“To satisfy demand, we need to transportaround 60,000–70,000 tonnes of PTA to EastChina every month,” explains James Yim, vicepresident sales, marketing, supply and logistics forBP aromatics Asia. “That means trucks runningfrom the site to our nearest port in Zhuhai, a shipfrom there to ports in East China, and finallyanother truck or barge to the customers.

“The issue with this system, of course, is the lead time of ten days or so that it entails, when other producers can guarantee a next-day delivery.”

BP’s answer is to turn itself into a ‘virtual’ localproducer. “Normally we wouldn’t dispatch any ofthe PTA until we had received firm orders andpayments,” says Yim. “But we can’t afford to dothat in this situation. So we make the shipments toEast China as a push strategy, and take orders andreceive payments either when they have arrived orwhile they are still on the way.

"The network of regional distribution centresmeans we have some kind of storage facility if andwhen we need it.”

Production at Zhuhai 2 began in December 2007 and has reached 95% capacity

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28 HORIZON MAY 2008

Safety first for thelubricants teamAfter a successful leadership conference, BP’s lubricantsteam has an ambitious aim to reduce accidents among itsemployees to zero, as Paul Whitehouse reports

WORKPLACE SAFETY has improved dra-matically in the modern era and the oil indus-try is no exception.

BP’s lubricants team was rightly proud of thesignificant reduction of personal injury casesand vehicle incidents in 2006, but the strategicperformance unit (SPU) is now focusing onworking towards its ultimate aim—to reduceaccidents among its people to zero.

For a business which has 8,000 peopleoperating around the world, in a multitudeof different functions and in varied environ-ments, that is an ambitious goal.

It is accepted that the conventionalapproach of imposing safety restrictionswould be unlikely to succeed on its own, so instead the importance of safety is beinginstilled into the minds of all staff. This philosophy formed a crucial part of a recentlubricants leadership conference, held inPasadena, California, where Mike Johnson,the senior vice president of lubricants,encouraged leaders to embrace safety, ratherthan try to dictate rules.

“We want to approach safety from a different angle—to embed a safety culture inthe hearts and minds of our people instead ofjust meeting targets,” he explains.

“We have invested a lot of time on this overthe last few years and that has really driven upsafety standards.”

Lubricants employees face three mainareas of safety risk: road transport, as theorganization covers 150 million km (90 million miles) every year; transporting rawmaterials and hydrocarbon products overwater; and manufacturing products or theiruse on customer sites. Programmes are inplace to manage all these risks, and effectivetraining has helped reduce overall accidentand casualty levels. But the lubricants team isnow exploring more far-reaching ways tochange attitudes and increase commitment.

The business is working with shipping andindustrial customers to raise the bar on safetyfor them, and ensure that people and productsare safe on customer locations. The next step

is to use different tactics to improve on thegains already made.

“We are trying to take it to another level,”Johnson explains. “To take safety to the nextlevel, you need to get into the hearts and mindsof people. We still need rules and regulations,but we need more than just that if we are to getto a completely injury-free environment.”

To underscore that, at the Pasadena conference a safety session was organizedwithout using a single statistic. Instead theteam talked about personal stories and aboutwhat safety meant to individuals.

“The objective is to win people over,”Johnson says. “You can force people to comply,but you can’t force anyone to commit.

“Our objective is to be totally accident free—it is not just about being better than last year. Ifyou want to achieve an incident free environ-ment, everyone has to totally believe it’s theright thing, and it’s more than just words.Those who attended the conference havetaken the accident free philosophy and willspread it in the areas of the business wherethey operate.”

Early indications suggest the new approachwas well-received as feedback from the con-ference has been very positive. “The feedbackhas been the best I have ever seen from anyconference,” Johnson says. “During the ses-sion delegates broke into table discussions toallow people to get their stories out. There wasa lot of active involvement and personal sto-ries coming out into the room. It became avery engaging and personal session. If you canpersuade people to tell their stories, they willresonate with this much more effectively thanwith statistics.

“We made a stand that every employee u

‘To take safety to the next level,you need to get into the hearts

and minds of people.’ Mike Johnson

Mike Johnson is drivingsafety as the top priority forthe BP lubrications team

22-31 R&M.qxp 24/04/2008 16:19

MAY 2008 HORIZON 29

22-31 R&M.qxp 24/04/2008 16:20


30 HORIZON MAY 2008

should go home safely every day. Rather thansetting a number, we have asked everyone tosign up to that commitment.

“Although we had 120 people at the confer-ence, there are 8,000 people in our businessand we are asking them to change the way theyapproach safety.”

Lubricants will continue to fulfil the commitments of BP’s six-point plan and rein-force the importance of those rules, alongsidethe work to increase employee commitment.

“We are trying to create a groundswell will-ingness and commitment to safety,” Johnsonsays. “When we personalize it to the point ofeveryone going home safely, there can’t beanyone who doesn’t want to sign up to that.No-one should have to knock on the door of ahusband, wife, brother, sister, father or moth-er and tell them that their loved one won’t becoming home that night due to an accident atwork,” Johnson says.

BP Lubricants is also celebrating two very successful years financially, but now hasan even more demanding business target for the future. Johnson highlights that theobjective was to meet several targets by theyear 2012, with a package of targets rolled up

The lubricants leadership conference in Pasadena, below, andchildren with bikes built by the team, above

into the figures of that dateline. “The first figure ‘2’ represents a commit-

ment to double the profit level by the year2012. The ‘0’ represents the organisation’sgoal to reduce accidents among staff to zero,and the 12 is a financial objective, to boostlubricants return on capital by 12 percentagepoints.”

Improved performance is expected to comefrom greater efficiency, though Johnson says itwill not be achieved by cost savings alone.“You cannot just save your way to success in acustomer facing business. Our strategic agenda is centred on four key areas: safety,growth, efficiency and enablers—with thisfocus we are able to engage our people on thepriorities that will take our business to thenext level in service of the BP forward agenda.

“The conference this year provided space

for delegates to discuss and input into each ofthese areas and will continue to do so througha variety of channels going forward.

“Our leadership team represents diverseareas of the business and locations through-out the world. Most of the delegates only getthe opportunity to come together once a yearat the conference, therefore we feel it’s impor-tant to create a session which encouragesstrong relationships,” says Johnson.

One way the leadership team achieves this is to host a team building exercise that directly benefits a local charity. This year delegates were given components and askedto construct bicycles as a team-building exer-cise at the start of the event, with 35 finishedcycles handed over to a charity which distrib-uted them among disadvantaged children.

“You can imagine their faces, some of thesechildren had never had a bike before in theirlives,” enthuses Johnson who closed the conference with his vision of the future inwhich he asked delegates to close their eyesand imagine it was 2012.

He says: “If we do the things we talked aboutwe will truly be able to say we have taken ourbusiness to the next level.” n

‘Our strategic agenda is centred onfour key areas: safety, growth,

efficiency and enablers.’ Mike Johnson

22-31 R&M.qxp 24/04/2008 16:21

News in brief

MAY 2008 HORIZON 31

UK

Supply contractCastrol Marine has been awarded athree-year contract by UK ferryoperator P&O to supply lubricants to itsentire ferry fleet. Castrol previouslysupplied all but two of the company’svessels. P&O carries more than 10million passengers a year, and servesmany popular cross-Channel routes.Castrol Marine account manager SimonCox said that there was severecompetition for the business, as allmajor lubricant companies tendered forthe 2.7 million litre contract. He said:“We definitely weren’t the cheapest,wehad to be competitive on price, but ourtrack record, the quality of our service,strong customer relationships andgreat technical support proved to be the deciding factors.”

Europe

Winning teamBP’s group trade marks team won thePro Bono Award at the inauguralInternational Law Office EuropeanCounsel Awards for a series ofworkshops they organized for studentsin East London. The master classes inintellectual property were organized aspart of the Young Enterprise scheme,designed to help young people learnabout business. After the workshopsthe team received high praise from theYoung Enterprise charity and thestructure of its seminars has been usedas a template for other classes.

US

Invigorating launchThis summer a new BP gasolineformula, Invigorate, will be used inthree BP gasoline grades—BPRegular, BP Silver, AmocoUltimate—at 5,000 stations east ofthe Rockies. The formula helps protectvehicles against corrosion, depositand sludge formation and improvesperformance. Kevin Phelan, vicepresident of fuels marketing, says:“This is the biggest product launch inUS BP history.We’re offering adifferentiated product with realbenefits at a competitive price, with asite experience that offers more thanour consumers expect.”

US

New websiteCastrol US has launched a websiteoffering advice on how and where to recycle used motor oil. Thewebsite www.castrol.com/recyclingoffers visitors the chance toautomatically find their nearest motor oil collection centre simply byentering their postcode. Highlightingfacts about engine oil the websitereveals oil facts including that if the oil from one oil change is improperlydisposed of and not recycled it cancontaminate one million gallons of freshwater, which is a year’s supply for 50people. There are more than 30,000locations in the United States that willaccept and recycle used motor oil.

Bangladesh

New lubricantBP’s advanced car lubricant Visco 3000 is now available in Bangladesh at all Meghna filling stations. Theproduct has been designed to keepengines up to 30% cleaner than otherlubricants, improving fuel economy and engine life. BP Visco 3000 is already a popular brand in Europe andthe Middle East. BP has sold lubricantsin Bangladesh through MeghnaPetroleum since 1985 and has a large share of the lubricants market inthe country.

UK

Fleeting resultsSupermarket chain Asda is planning to use Castrol’s fully synthetic Elixion0W30 engine oil and SAF-X0 driveline oil products for its 1,000-strong distribution fleet in the UK after a year-long trial showed fuel economyimprovements of two per cent. Thetrial—the longest and most rigorousever conducted by BP—includedtesting dozens of Asda’s Scania trucks,analysing 7,900 daily fuel economyresults and assessing mineral-basedlubricants versus full-synthetic motor oil performance over an estimated 4.5 kilometres (2.8 miles) of driving. Iffurther trials prove successful Asda will begin switching its entire UKdistribution fleet to Castrol’s productsin the fourth quarter of 2008.

US

Competition successA music-themed competition to promote the arrival of BP’s conveniencebrand ampm in Chicago and Atlanta has been deemed a success after theevent received strong media coverage in the two local markets andnationwide. The competition, organized in association with gamemanufacturer Activision, was designed to appeal to ampm’s targetaudience of young men. It featured a month-long competition at 12 sitesand attracted more than 1,000 entrants. Judges chose Nick Lanzo, fromElmwood Park, as the overall winner. Lanzo (pictured with his prize guitar)was rewarded for his playing style and his “overall rock star look”.

Europe

Sharing statisticsFormer international soccer referee Pierluigi Collina swapped notes withgrand prix motorcycle racing teams about data analysis in sport at thePortuguese MotoGP as part of his role as ambassador for Castrol’ssponsorship of UEFA Euro 2008. Collina has helped the global lubricantscompany develop the Castrol Performance Index—a system of analyzingplayer performance which will be available on dedicated websitewww.castrolindex.com during the summer tournament.

22-31 R&M.qxp 24/04/2008 16:23

Exploration and production

32 HORIZON MAY 2008

THE WORLD beneath our feet is myste-rious. Pipelines, many of them under-ground, are a fundamental part of fuelsupply operations. They carry crude oil,

natural gas and petroleum products from thepoint of production to refineries, storage facil-ities and distribution depots, and on to theforecourt, power station or customer.

Industry figures show there are 483,000km(300,000 miles) of gas transmission lines inthe US, and some 36,000km (22,400 miles)of crude oil and products pipeline in Europe.BP operates around 60,000km (37,300miles) of oil and gas pipelines ‘in the ground’,on and offshore around the world.

Integrity is paramount, of course, to avoidmovement, rupture, and leakage. Althoughpipelines are designed to be robust and buriedout of harm’s way, they don’t like impacts,ground movement, vibration or any kind ofuntoward encroachment or interference suchas illegal tapping. They don’t take kindly,either, to very heavy vehicles being driven overthem, accidental severance by a third partycontractor’s excavation tool, or even extensive

Picking up bad

vibrationsBP is piloting an innovative pipeline

integrity system that uses fibre optics to identify asset threats with startling accuracy

32-41E&P.qxp 25/04/2008 14:08

REPORT BY HELEN CAMPBELL

MAY 2008 HORIZON 33

INTEGRITY RISKS TO PIPELINES

There are numerous external threats to pipelines, all of which can potentially cause a leak in the line — minor, catastrophic, orsomewhere in between.

Particular threats vary from region to region.Alaska suffers from frost heave, which can force apipeline out of the ground. In Colombia, landslidesare a major concern, whereas in Nigeria andChina there have been plenty of reports of illegaltapping and vandalism of oil and gas pipelines—serious threats to human life as well as tooperations and profitability.

Other threats to pipelines around the world can include:

n Excavator or construction equipment impactnHeavy vehicles crossing pipeline corridorn Exposure of pipe due to erosion, wash-outs

due to excessive surface water and subsidencen LandslipnDriving pilesn Seismic fault movementnAgriculture equipment (eg drain works,

fence installation)n Failure of adjacent utilities (eg of other pipeline

in same corridor or crossing)nUnexploded ordnancen Sabotagen Conflict and war

Threat mitigation

managed the development for the last fouryears. “With current technologies, small leaksare undetectable,” he continues. “Traditionalpipeline inspection methods used globallyinclude people walking the line or riding alongit on horseback, flying over perhaps every twoweeks in a helicopter, or using internal moni-toring systems to check integrity. These aretime consuming and not that effective. In2003 we launched a feasibility study to definewhether fibre optics technology could be usedto detect small to medium gas leaks and iden-tify third party activities going on nearpipelines, and came up with PCMS.”

The system uses a combination of twoSchlumberger technologies—Brillouin opti-cal time domain reflectometry (BrillouinOTDR) and coherent rayleigh noise (CRN)—and optical fibre distributed sensors tosimultaneously measure the temperature ofthe ground around a pipeline, fibre strain andvibration, all in real time. Under standard set-up conditions, temperature is continuouslymonitored, strain measured every 10 min-utes, and acoustic signals every second. u

burrowing nearby by large families of inquisi-tive rabbits. Any leak, if undetected, can leadto injury or death of humans and wildlife; lossof product; operational downtime; environ-mental damage and financial loss. It can alsoshatter a company’s reputation.

As part of a comprehensive pipeline integri-ty technology programme, BP is actively seek-ing new technologies to detect and monitorthird party intrusion and ground movement,and to enhance leak detection. Now, in adevelopment expected to have a major impactin the global pipeline sector, BP andSchlumberger, the Houston-based oilfieldservices group, have developed a pipeline con-dition monitoring system (PCMS) to detectand monitor external pipeline threats. Usingfibre optic cables already present in manypipeline systems, its developers say the PCMSis the most effective and accurate system ever.

“Pipelines face numerous external threatsthat can lead to leaks, including ground heave, accidental damage or intentional third party interference,” says BP pipelines adviserNorman Sanderson, who initiated and has

32-41E&P.qxp 25/04/2008 14:10

EXPLORATION AND PRODUCTION

34 HORIZON MAY 2008

Changes can indicate a threat or, in the case ofa fall in ground temperature, a gas leak.

The PCMS, which also involved expertisefrom Southampton and Aston Universities inthe UK, and the UK’s National Grid as well asfunding from the Department of Trade andIndustry, is capable of monitoring between100km and 200km (62 to 124 miles) of apipeline’s length in each direction. This canalso be done from a single location and with-out the need for any electronics in the pipelineitself. Future developments are likely toextend this coverage capability.

Amazingly, the system can identify theexact nature of most threats, telling an operator if a heavy vehicle is approaching thepipeline, if activity such as excavation or illegaltapping is taking place, or if ground near thepipeline has shifted. The technology is so sen-sitive it can even differentiate between a cowand a person walking over a pipeline.

In addition to detecting leaks by monitor-ing for the acoustics of a gas escape and tem-perature changes, the PCMS is a leak preven-tion system, designed to warn an operator

of environmental changes close by, beforepipeline damage occurs. “All external activi-ties have a unique acoustic signature,” saysSanderson. “The system analyzes the combi-nation of outputs to provide the operator withan event recognition and location capability,allowing early response to be initiated.”

That early response could include shuttingdown a pipeline or underpinning it to preventbuckling in the event of seismic disturbance.

Field trials of the PCMS took place in 2007.Looking for a site to test the use of fibre opticcables to monitor strain and ground move-ment, the development team took up an offerfrom the Forties Pipeline System (FPS) strate-gic performance unit for it to use spare land in the Kinneil terminal near Grangemouth,Scotland, UK. The FPS engineering teamoffered the land to enable the PCMS trialsteam to simulate third party intrusion andground movement events, and collect fielddata to allow refinement of the system.

“The FPS team was very happy to host thetrials,” says Walter Kerr, engineering manag-er, North Sea infrastructure. “As the operator

INDUSTRY-WIDE PIPELINE FAILURE STATISTICS TO 2003

Corrosion

Mechanical failure

Third party damage

Natural hazards

Operational

Other

Europe gas

Europe oil

US gas

US liquids

7%5% 6% 15%

17%50%

4%7% 29%

24%36%

7% 11% 26%

26%27%

3%

5% 13% 26%

32%19%

5%

Key

32-41E&P.qxp 25/04/2008 14:12

MAY 2008 HORIZON 35

of a 209-kilometre (130 miles) onshorepipeline, we were very interested in this tech-nology. At one point, the FPS actually crosses alarge park in which the annual T in the Parkmusic festival is held and attracts crowds of50,000 a day and their vehicles. Although wehave exclusion zones and an emergency planin place, there is always potential for thirdparty encroachment and impact on the line.”

And Malcolm Adamson, contracts andservices representative for BP, adds: “The FPSgoes through a lot of built-up areas, and wherethere is often farming and contractor activity.Although markers for the pipeline are inplace, third parties are not always aware ofwhere the pipeline is and do not always tell uswhat their work plans are.”

In addition to conducting their own spe-cially designed trials to monitor the effects on

fibre optic cables of simulated landslips androck impacts, the PCMS team was able tomonitor the impact of 50 cars a day driving inand out of a car park and over the test cablesthey had laid in the ground. The cables remainin place since the trials were completed andcontinue to provide valuable data.

No pipeline operator wants alarms going offevery time a car or an innocent rabbit comeswithin the vicinity of a pipeline, so the PCMSsystem is so sophisticated it can be tailored to apipeline’s specific environment and set at dif-ferent alarm thresholds. Andy Strong,Schlumberger’s midstream oil and gas busi-ness manager, explains: “In an environmentsuch as Alaska, an operator might choose toalarm every threat, whereas in a very built-uparea you could program cars and people as anallowable event. The system will recognizewhat is normal, like a computer’s anti-viruspackage, and we would provide updates.”

The PCMS needs no maintenance and canusually be retrofitted without damaging exist-ing pipelines. Besides energy pipelines, itsdevelopers expect it to be of huge benefit in

other applications, including perimeter fenc-ing, utilities pipelines, border security anddetecting ground heave around storage tanks.Although the technology has been developedwith onshore pipelines in mind because of theacute interface between pipeline, people andenvironment, it also has great potential to beused offshore to detect seabed shifts that couldendanger pipelines. To date, interest in the sys-tem has been very high and expectations arethat PCMS will be widely taken up.

“The industry has not had this type of 24-7monitoring before,” says Les Owen, pipelinesadviser on the integrity management team inHouston, US. “The traditional ways of moni-toring pipelines are not very effective becauseas soon as you’re out of sight that section of aline is not being monitored. Several detectionsystems are on the market already but havenot proven as effective or accurate as this one.

“The real value is in the threat detection. Ifyou promptly detect a threat, you have theopportunity to prevent pipeline damage or aleak. This is a total step-change in pipelineintegrity management.” n

‘This is a total step-change inpipeline integrity management.’

Les Owen

TO

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36 HORIZON MAY 2008

Business and country integration group vice president Anne Drinkwater believes BP’s forward agenda will equip it perfectly to operate safely and simply, writes Adam Smith

DESPITE A thoroughness that comes with abackground in applied mathematics, AnneDrinkwater, business and country integrationgroup vice president (GVP) for explorationand production, is driven by getting thingsdone as simply and practically as possible.

This desire fits her new role in business andcountry integration where she is responsiblefor ensuring exploration and production(E&P) non-technical risks are fully mitigatedin line with the company’s forward agenda.Drinkwater’s remit covers most E&P loca-tions outside of North America, the NorthSea, Russia, China and India.

Business and country integration extendsbeyond non-technical risks and providesinsight on emerging external themes acrosscountries, regions and economies, and assesses the impacts on BP’s businesses, plansand strategy. In this area, Drinkwater findsherself offering guidance on cross-countryand cross-segment business issues and oppor-tunities—something that could become morecommon as external competition intensifiesand international oil companies look for dif-ferent and compelling offers.

For Drinkwater, non-technical risk is a broad field and includes such things as alignment with governments, environmentalissues, the agendas of non-governmentalorganizations (NGOs), and the interests of thecommunities where BP operates. These issuesmust always be set in the context of BP’s busi-ness and operations in any particular country.

She explains: “The key is having people inexternal affairs in each country who under-stand BP’s business and the governmentneeds and issues, and who are able to createthe collaboration that allows business tothrive, while all the time staying in the space ofa commercial organization.

“We are not a government or a philanthrop-ic organization—we are a company and weneed to make sure we fit in that space and then

align with what the government wants.”Her remit comes out of the move to

fully embed communications and externalaffairs (C&EA) expertise into the strategicperformance units (SPUs) and move awayfrom the regional model—all part of the forward agenda. The move was just one of the changes designed to make BP a moredirect, simple business.

She says: “The forward agenda allows thecountry teams to consolidate their role. Weare now able to take external affairs withineach country to the point where it has mostrelevance—where it interfaces with govern-ments and customers. Accountability forexternal affairs and non-technical risk man-agement is now fully embedded in the busi-nesses. There aren’t people in a central teamwho second-guess—the drive will come directfrom the business.”

With a family spanning four-generationsand spread over a couple of continents,Drinkwater knows one of the keys to stablerelationships, regardless of the environment,is balancing your needs in what may be a verydifferent environment to the one you areaccustomed to. And the former business unitleader and head of country for Indonesiabelieves such skills are vital to securing reli-able business operations for BP in what areoften highly-charged political climes.

She continues: “This role is one of makingthe whole greater than the sum of theparts—we work in a space between SPUs, whocan do almost anything but need some helpevery now and again.

“I am not a political adviser—but I do havevery practical experience of running business-es in different political, economic and socialcontexts. My aim is for everything we do in anon-technical space to be very practical,focused, and business-orientated. My expec-tation is that the people on the ground willhave a way of both understanding and miti-

Drinkwater hails the simple approach

32-41E&P.qxp 24/04/2008 16:37

MAY 2008 HORIZON 37

gating current risks, as well as detecting anyemerging risks.

“I also believe that listening to the externalworld is something that is best done as close to where the action is happening as possible. But again, it is imperative that you listen in the context of the business activities wehave, otherwise you will get drowned out by noise.”

But Drinkwater believes that embracingbusiness and personal challenges will ulti-mately enable BP to extend the spirit of ‘silentrunning’ championed by group chief execu-tive Tony Hayward across all its activities.

She explains: “If I am doing the right thing,and we are all doing the right thing across the businesses, you will get to the point of silent running. This means that we will not be surprised by any non-technical issues—wewill actually be able to see them coming andhead them off.”

It is the simplicity created by the forwardagenda which appeals to Drinkwater, whobelieves the stripping back of a lot of the “cen-tral machinery that used to create a lot ofsmoke and noise” will enable BP to have aclearer external perspective—including whatthe competition is doing and therefore creat-ing greater opportunity for success.

She says: “We do not need excessive assur-ance. We have a group of diverse and hugelyexperienced people on the ground with clearaccountabilities—they understand what theyneed to do in terms of safe and reliable opera-tions, and they are mindful of the non-techni-cal risks inherent in their business.

“Success comes down to actually havingpeople who can think broadly enough, engagebroadly across their organization and engagebroadly externally as well, harnessing thepower of the entire organization.

“This is all simplification—we have takenaway things like country plans, we have takenaway a lot of the assurance steps and we’vemade it much clearer. We are selective aboutwhere we intervene and are working realproblems—not writing briefs and memos.”

While she can’t put a dollar value on multi-faceted thinking, Drinkwater knows it is integral to successful delivery across BP’s E&P portfolio. She concludes: “It’salways important to ask that question: ‘what have I missed?’ It is important to have alaser-like focus on delivery—it’s also impor-tant to have those moments to reflect morebroadly on the external environment.

“The way we are structured now enables thesegment executive team to do that. We havetimes when we are laser-like and we have themoments when we reflect more broadly.” n

GR

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38 HORIZON MAY 2008

Offering a solid platformto build on

“OUR RUNTIME goal is today-plus-one,safely.” That’s how JP Russell, subsea adviser,sums up the operating philosophy of the peo-ple running BP’s Na Kika oil and natural gasproduction platform in the Gulf of Mexico(GoM). Focusing on the here and now makessafety a priority, and the performance records—including runtime, or production withoutunscheduled interruptions—will come ontheir own.

Fixing attention on the near-term hasachieved impressive long-term results. Na Kika’s production efficiency of 97% is atworld-class level and several percentagepoints above the point at which engineers cal-culated the facility would produce. Moreover,this efficiency comes in the face of challenges.

“We utilize production tie backs instead ofdirect vertical access wells or dry trees,” saysRussell. “As a result, system maintenance andprocedures for returning equipment to serv-ice following a shutdown are more difficult.”

Na Kika’s high production efficiency stemsfrom the use of a set of procedural tools con-tained in BP’s production efficiency improve-ment programme. These include ‘root causefailure analysis’ that is designed to pinpointand eliminate problems that lead to produc-tion shutdowns.

But Robert White, maintenance supervi-sor, offers a note of caution when describinghow Na Kika recently solved a difficult problem: “Procedures themselves are notenough; it takes experienced human inter-vention as well.”

The facility had completed 103 days without an unscheduled shutdown when acontrol panel which monitors equipmentindicated a fault in the system and automati-cally stopped production. Technicians were able to correct the immediate problem butwere unable to pinpoint the root cause. Na Kika resumed production and continuedfor an additional 123 days until another upset occurred.

“We believe in not giving up and keep after aproblem until it’s resolved,” says White. “Inthis case a persistent electrical engineer, sup-ported by other team members, discoveredand fixed a hard-to-detect electrical ground-ing fault in a low-voltage system.”

Another reason for the success is the lack ofpressure from onshore managers to maintainoutput and solve problems rapidly, if not com-pletely. “Houston gives us the space to solveissues and supports our belief that sustainedruntimes are better than quick recovery,” addsPaul Landry, offshore installation manager.

Na Kika’s strong culture is apparent “fromthe moment you step aboard,” according to

Craig Wiggs, asset manager. He continues:“New employees get an immediate introduc-tion to the Na Kika way of doing things and are told they will receive all the help needed tosucceed. Though Na Kika has gone throughchangeovers in personnel over the years, thisapproach has remained successful.”

The belief is that taking time to ensure tasksare done properly has benefits beyond smoothoperations and well maintained equipment.

“Operating properly leads to operatingsafely—they reinforce each other,” says TroyAycock, operations lead technician.

Na Kika’s safety record supports this belief.By March 2008, the facility had worked morethan 1,380 days—nearly four years—withouta recordable accident, making it the leader

among BP platforms in the Gulf of Mexico andamong the best in the industry. The record isthe product of a culture on Na Kika that putssafe operations ahead of other considerations.

“There are government regulations and BPregulations that are a step above what govern-ment requires,” says lead technican MichaelPitre. “They’re important but mean nothingunless people are committed to followingthem. From management on down, we allbelieve that if it’s not safe, stop it. In the sameway, we look out for each other so if the guynext to you is tired, we shut him down.”

Workers are encouraged to question opera-tions and discuss safety with supervisors.Those discussions begin with meetings eachmorning before the workday begins.

BP’s Na Kika platform in the Gulf of Mexico isthe epitome of the company’s silent runningtenet. Paula Kolmar looks at how safeoperations have lead to impressive efficiency

32-41E&P.qxp 24/04/2008 16:39

MAY 2008 HORIZON 39

“We believe in involving everyone in thesemeetings so people take turns leading talkaround a safety topic they choose,” saysLandry. “That gives people ownership and asense they are all contributing to the effort.Safety is not about the numbers, it’s aboutcommitment and valuing people so if some-one gets hurt we feel we have failed our obliga-tion to protect.”

Maintaining that attitude is difficultthrough 14-day on, 14-day off work schedules.Na Kika managers recognize this challenge.

“We plan carefully to make sure that sim-pler procedures are scheduled for the begin-ning of a work cycle when people are becom-ing reacquainted with the facility,” continuesWhite. “We ramp up to more high-impact

operations when people have settled in andare more mentally alert, and then return to aless challenging schedule when people beginto tire near the end of a two-week tour.”

When a tour ends, Na Kika leaders likePitre encourage workers to carry the safetyapproach home to reinforce offshore routinesbecause “we want you and your families to besafe and that you come back to us.”

Landry adds: “Safety is part of the greaterNa Kika culture that values each person. Wetreat a vice president visiting the platform thesame way as a member of the catering crew.When you have an environment of mutualrespect and personnel accept the challengesas a contributor of success the numbers willspeak for themselves.” n

BP’s Na Kika platform, off the coast of New Orleans, is the company’s largest producer in the Gulf of Mexico

NA KIKA’S HIGH PRODUCTIVITY

Na Kika’s design led to it being named after anoctopus god worshipped in the Gilbert Islands. Theplatform’s central production facility is connected toa system of flow lines and risers that resembletentacles. Na Kika has produced high volumes of oilfrom the Kepler, Ariel and Hershel fields, and naturalgas from the Fourier and East Anstey fields.

Situated in around 1,920 metres (6,300 feet)of water about 225km (140 miles) southeast of New Orleans, Na Kika was built at a cost of $1.3 billion as a joint venture of BP and Shell. A dailyaverage of 75 workers help produce 78,000 barrelsof oil and 270 million cubic feet of gas a day, makingit the largest BP producer in the Gulf of Mexico.

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40 HORIZON MAY 2008

SO MUCH of BP’s hydrocarbon productioncomes from platforms in the Gulf of Mexico(GoM) that the logistics management groupfor deepwater assets is one of the largest in theworldwide industry. What it quietly accom-plishes is key to BP performance.

Aviation and marine planning is a littleknown but vital function within BP thatensures staff are transported to the right plat-form at the right time, along with diesel,equipment and supplies required for opera-tions. Like a well-tuned engine, the GoMlogistics team based in Houston, US, runs sosmoothly that its complexity and importancemostly go unnoticed.

Keith Hayles, manager of GoM logisticsand materials management, knows the valueof quiet operations. “Our philosophy is toserve the needs of our offshore customerssafely, effectively and efficiently with no fan-fare,” he says.

The group manages the movement of allpeople and cargo travelling to and from BP’sassets in the GoM. Whether by helicopter orboat, and whether to platforms near the shoreor hundreds of miles across the sea, it is thelogistics team that makes things happen.

Without the schedulers working closelywith the asset teams to define vessel demandand prioritize operational needs, logisticswould not be effective. According to Hayles:“The vast and complex level of co-ordinationand communication is vital to the success ofour offshore customers.”

With more than six million man hours without a recordable incident and a stellar on-time arrival and departure record, it is clear why GoM logistics are under theradar—unless something bad happens, noone hears about them. They epitomize BP’s‘silent running’ approach day after day.

“We have built a business to meet all of BP’sneeds in the Gulf, from marine to aviation,under one umbrella team,” continues Hayles.“In this way we create a synergy which maxi-mizes our expertise and enables us to stan-dardize policy for safety and efficiency across

Oil and gas production in the Gulf of Mexico is dependent on personnel efficientlyoperating BP’s platforms, drill ships and rigs. Getting workers and supplies offshore is the silent but critical part of the performance mix, as Paula Kolmar reports

Keeping a low profile, keeping operations running

GULF OF MEXICO LOGISTICS

Equipment in 2008Aviation: Sikorsky S-92A (18 Pax) 4Sikorsky S76C+ (12 Pax) 3American Eurocopter EC135P2 (5 Pax) 1Bell Helicopters BH206L3 (5 Pax) 2Sikorsky S61N (Search & Rescue) 1Marine: Vessels 25Shore base: Shore bases 3

Statistics from 2007Aviation: Total flight hours 15,225Takeoffs/landings 19,630Passenger movements 141,600Marine: Platform approaches 9,600Tonnes of deck cargo in/out 300,000Gallons of diesel fuel transferred 45,000,000Man hours worked without a recordable incident +6,000,000Shore base: Crane Lifts 18,240

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MAY 2008 HORIZON 41

US

Kodiak discoveryBP has announced an oil discovery in itsKodiak prospect in the Gulf of Mexico.The well, which is located in theMississippi Canyon block 771 around95km (60 miles) off the Louisiana coast,is in about 1,500 metres (5,000 feet ) ofwater. The well was drilled to a totaldepth of 9,494 metres (31,150 feet) andfound around 152 metres (500 feet) ofhydrocarbon-bearing sands in themiddle and lower Miocene reserves.Andy Inglis, BP chief executive ofexploration and production, hailed thediscovery, saying: “This discovery, inthe vicinity of our 2003 Tubular Bellsdiscovery, further strengthens BP’sresource base in the Gulf of Mexico and has the potential to become animportant new source of production for the US.”

North Sea

Book prizeA book charting the 25-yearanniversary of BP’s Valhall field has won a top award. LF6A: Valhall at 25 won an excellence award in themultilingual communication categoryat the Communicators in Businessawards. It will now go on to be furtherscrutinized by judges as they pick a ‘best in class’ publication. The judges said the book—which takes its name from the radio call sign for the field—had an “honest approachwhich is sustained throughout”. Valhall is a demanding field that has been under continuousdevelopment since start-up in 1982. It will probably be on-stream in 2050 and in 2010 the field will start production from a new field centre.

US

Culture messageBP exploration and production chiefexecutive Andy Inglis (pictured) told an Alaska town hall that the companyneeded a deep cultural change fromthe top down, as well as a

simplification of business operations.Inglis told the 27 March audience thatBP has a wealth of opportunitiesacross the world but much of the firm’sfuture success depends on its ability toexecute safe and reliable operations.He said: “Without a deeply embeddedculture of safety, operations integrityand accountability, you cannot effecteven the most sound strategy.”

US

Block biddingTwo federal sales of offshore oil andnatural gas leases in the eastern andcentral Gulf of Mexico attracted morethan $3.7 billion in bids. BP was thehighest bidder on 63 blocks offered aspart of the 206 central Gulf lease salesannounced in New Orleans, Louisiana.Its total investment was about $340 million (gross).

NEWS IN BRIEF

all offshore transportation.”BP does not own the helicopters or the

boats, but it manages every aspect of equip-ment requirements, maintenance and opera-tion. Hayles adds: “Our team consists of thetop experts in each part of logistics hands-onmanagement. Our aviation team leader, forexample, is a very experienced pilot and for-merly ran one of the largest helicopter serviceproviders in the country. It’s the same with ourmarine and shore base divisions.

“With the right expertise we are able to vigorously manage everything from craneoperations that load cargo onto boats, to helicopter take offs and landings.”

Shore base operations based in Fourchon,Louisiana, are integral to the co-ordinationand effectiveness of the schedulers. The shorebases co-ordinate daily vessel movements andload cargo safely. Hayles adds: “They are thereal hub of all logistics marine activity. In2007 the team completed 18,000 crane liftsand 138,000 forklift movements.”

And Virgil Russell, aviation team leader,confirms the safety-first approach appliesacross the board. He adds: “BP policy isembedded in our contractors before we will do business with them. Weapprove everypilotand every mechanic who is on board the heli-copters, and our aviation team manages themaintenance and condition of each helicopteras well as overseeing heliport operations.”

BP’s logistics team has raised the bar whenit comes to moving people and materials

around the GoM. “We have become the goldstandard that the rest of the industry aspiresto meet,” asserts Hayles. “We do not compro-mise on safety or efficiency in serving theneeds of our customers.”

BP’s deepwater assets represent the bulk of where the logistical efforts are focused. As hydrocarbons are discovered further out in the Gulf, Hayles and Russell continue to look for ways to improve and enhance service. Logistics currently manages thetransport of cargo, supplies and people about400km (250 miles) to the Discoverer Spirit drillship n the GoM from the heliportin Houma, Louisiana.

Challenging times lie ahead as deeper

discoveries are made. With this vision inmind, Hayles’ team began preparing to exceedexpectations several years ago.

In 2004, each helicopter and boat wasreplaced with the safest, most efficient, cut-ting edge models on the market. Russell, avia-tion team leader, rebuilt the fleet of helicop-ters to the highest standard in the industry.

Hayles concludes: “BP continues exploringand building in the Gulf. Alongside, the GoMlogistics team continues to push the envelopeof excellence in safety and effective resourcedelivery, looking ahead to anticipate the needsof the future. We intend to remain ‘silent run-ners’ setting industry standards at the highestpossible levels.”n

BP’s Gulf of Mexico logistics team operates out of its Houston, Texas, headquarters

32-41E&P.qxp 24/04/2008 16:43

Alternative Energy

42 HORIZON MAY 2008

BP group chief executive Tony Hayward has taken the company’s green agenda to the

US government and the world’s top firms

Green energy’spolitical test

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REPORT BY DON WILLMOTT

MAY 2008 HORIZON 43

WHEN MORE than 3,000 dele-gates from 120 countries con-verged on Washington DC, in earlyMarch to attend the Washington

International Renewable Energy Conference(WIREC), smart ideas were in abundance.

As the world’s largest high-level conferenceon alternative energy, WIREC brought togeth-er representatives from government—includ-ing US president George Bush—and businessto analyze the costs and benefits of deployingrenewable energy technology worldwide.

“If we act now, we will be able to smooth thetransition to a lower carbon economy of thefuture,” BP group chief executive TonyHayward said in his address to the conference.Stressing the need for speed, he added:“Energy security and climate change are twoof the greatest challenges facing us today.There has been quite a lot of talk about them inthe last few years. Now is the time for action.”

Focusing on an International EnergyAgency projection that the world will require50% more energy in just 20 years, Haywardsaid a huge amount of alternative energyresearch is needed now and reminded delegates that BP is America’s largest energyinvestor, investing $30 billion over the past six years and planning to devote $30 billionmore over the next six years to help bring energy security to the US. Wind, solar, sec-ond-generation biofuels, carbon capture and storage, and hydrogen are all arenas inwhich BP is investing at a rate of more than $1billion a year.

Still, there’s no way that BP can do it alone.As Hayward put it: “We are proud of these ini-tiatives. But even though ‘clean tech’ is grow-ing very fast, let’s be honest: the scale at whichthe industry is conducting projects today isnot going to have much impact on the energymarket of the future. For that, we need sus-

tained investment on a massive scale. A stepchange of that nature will require sound ener-gy and environmental policies from govern-ments worldwide.”

Hayward proposed two major policy initia-tives which, while daunting, are necessary tomove alternative energy to the mainstream:first, the evolution of a carbon marketplacethat fairly reflects the true cost to the climateof greenhouse gas emissions; and secondly, asystem of incentives to accelerate new tech-nology and drive down its cost faster thanwould otherwise be the case.

Hayward has proposed a cap and trade sys-tem for greenhouse gas emissions, where gov-ernments decide on a level of emissions reduc-tions and then release permits to emitters toachieve that level. “As a businessman, I am infavour of market-based solutions because I have seen how powerful they can be in prac-tice,” he said, adding that a cap and trade u

US president George Bush addresses the WIREC audience as delegates try to analyze the cost and benefits of renewable forms of energy

42-45 A&E.qxp 25/04/2008 09:23 Page 41

ALTERNATIVE ENERGY

44 HORIZON MAY 2008

system is already running with some successin the European Union, which has an emis-sions trading system.

BP Alternative Energy vice president andchief executive officer Vivienne Cox, who alsospoke at WIREC, echoed Hayward’s position.“Maintaining momentum depends on bothpolicymakers and businesses taking account-ability and taking action,” she said.

“There is an assumption that a price for car-bon is a long way off—that there is not thepolitical will or that the societal challenges aretoo great. But what is inescapable is that aprice for carbon is going to be a fundamentalpart of the future of energy, and we must pre-pare for that eventuality.”

Subsidy stance: As for incentives, Haywardsaid that while he was generally against subsi-dies, he did believe public good could comefrom bringing forward the development anddeployment of low carbon technologies, muchas public-private partnerships enabled theconstruction of early nuclear reactors.

He added: “The purpose of any incentiveshould be to kick-start the introduction oftechnologies, to accelerate them, and to drivedown their costs. But any incentive regimeneeds to be carefully designed and, critically,should be transitional in nature. Properlydesigned incentives should taper awayover time, in order to encourage and speed up the normal cycle that companies like BP go through.”

But are governments ready to take theplunge? Bill Gerwing, BP America generalmanager of regulatory affairs, says not toexpect significant progress in the near future.

“The reality is that jumping from nothing to some global agreement that has money on the table isn’t likely any time soon—we’regoing to have a domestic programme first,”says Gerwing.

But that may not be likely in the short term.“It’s about the economy,” he continues. “If theaverage man on the street feels like he’s gettinghit by additional charges from every direction,it’s not going to fly politically; any additionalcost put into the system will ultimately be paidfor by consumers.”

Gerwing also notes that legislation doesn’tnecessarily mean regulation. Laws could bepassed, but any regulatory phase could takethree to four years. He continues: “In fact, ifthe regulations were written that fast it wouldbe a record—they’ll probably fill a book six totwelve inches thick.”

Gerwing’s biggest concern is that carbonemissions permits will ultimately be rolled outon an industry-by-industry basis rather than

in a single comprehensive sweep, therebyadding years of confusion to the process.

Rachel Miller, BP director of federal affairs, who also attended WIREC, detectsdomestic political reluctance to dive into aninternational cap and trade system. She says:“Politicians may feel like we’re going to go intothis without knowing whether China or India are going to do anything, so our participation may drag down our economywithout ultimately helping to address globalclimate change.”

Still, Miller, who knows how Washington

works, sees hope beyond the 2008 electioncycle. “There’s a big challenge in getting any-thing done this year,” she adds. “I think as thenext president, whoever it is, comes in, it’ll bemuch more likely to get things done, perhapsin the 2009 to 2010 time period.”

And as for an international system, shesays: “If you have a president who is commit-ted to working on the climate change issue, it’smore likely that the US will take a leadershiprole and become more engaged on the inter-national scene, something we haven’t done forthe past eight years.” n

Delegates take a closer look at a BP Alternative Energy display at the WIREC conference

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MAY 2008 HORIZON 45

THE CHINESE city of Weihai is on its way to becoming the largest solar city in theworld—and setting the standards for thosethat follow—with the help and expertise of BP Solar.

BP Solar, Australia’s market leader, will be responsible for taking the Solar Cities con-cept to China and will form part of the teamresponsible for managing the project’s feasi-bility study.

The principle behind the Solar Cities concept is to show how solar power canaddress a city’s peak energy demands, reducethe requirement for investment in electricityinfrastructure, and cut carbon emissions.

Brooke Miller, regional director of BP Solar Australasia, says the experience gainedin Australia’s Solar Cities programme will be used to develop a comprehensive roadmapwhich will be used to assist model cities in China to address energy challenges both now and in the future.

She explains: “Today, almost every city,

BP Solar’s innovative Solar Cities programme in Australia has attracted a lot of admirers,including the world’s fastest-growing nation. Vicki Hammond reports on its new Chinese role

China eyes first solar city

in every urbanized country in the world is facing the growing challenge of meeting its peak energy needs, while reducing itsgreenhouse gas emissions.”

“Australia has been at the forefront of developing new technologies and innovativeprogrammes that can address this challenge.This project aims to deploy solar technologiesat commercial scale, providing a practicalexample of how bilateral agreements can provide a critical first step in developing a lowcarbon future.”

And the project to reduce greenhouse gas emissions and the carbon footprint of Weihaialso got a central government boost, withAustralian prime minister Kevin Rudd lend-ing his support to the plan.

From Blacktown in the western suburbs ofSydney, across to Alice Springs in theNorthern Territory and to Adelaide in SouthAustralia, BP Solar has gained experience indeveloping successful Solar Cities projectsthroughout Australia.

But the northeastern Chinese city of Weihaiwill be a very different proposition and a chal-lenge for BP Solar, according to Miller. Sheadds: “With a population that dramaticallyincreases in summer due to its popularity as atourist destination, Weihai has its own dis-tinct peak power challenges.

“Using technology that is available today,the opportunity exists to develop a trulyunique solar city model that not only meetsthese challenges but transforms Weihai into a showcase for other Chinese cities andindeed the world.

“As a direct consequence of the federal government’s support for the Solar Cities concept, seven Australian cities will demon-strate how the power of the sun can addresstheir peak energy challenges, reduce therequirement for investment in electricityinfrastructure and cut emissions.

“We look forward to completing the feasi-bility study and adding the city of Weihai tothis list.”n

NEWS IN BRIEF

US

Malone testifiesIncreasing taxes on oil and gas tosubsidize more expensive forms ofrenewable and alternative energy will result in less US energyinvestment, tighter energy marketsand, potentially, higher prices at thegasoline pump, BP America chairmanand president Bob Malone said intestimony before the US House ofRepresentatives select committee onenergy independence and globalwarming. Malone acknowledged thehardships high gasoline prices arecausing US consumers and urgedcongress pursue policies thatencourage production of all forms ofenergy. “We are committed to thegrowth of our renewable andalternative energy businesses,” hesaid. “But the hard truth is that evenwith major improvements in energyefficiency and the rapid growth of

solar, wind and biofuels, the US willconsume more oil, natural gas and coalin 2030 than it does today.” During histestimony, Malone reinforced BP’ssupport for the creation of a single,mandatory US greenhouse gasemissions registry and a market-basedprice for carbon to encourageconservation, drive energy efficiencyand address global warming.

Global

Investment milestoneBP announced that its total investmentin its Alternative Energy business willhit $1.5 billion by the end of 2008.Speaking at the company’s annualgeneral meeting in London, UK, on 17April, group chief executive TonyHayward told shareholders:“Alternative Energy is an innovativebusiness, still in the investmentphase.” He added: “Our objective overthe course of 2008 and beyond is to

create equity value for ourshareholders by raising this business’svisibility. We will examine a number ofoptions, including joint ventures,partnerships, and even, whereappropriate, partial public offerings.”

UAE

Qatar renewablesBP is in talks with Qatar Petroleum tokick-start the country’s renewableenergy assets, according to the Middle East & North Africa FinancialNetwork. The organization reports thepair are exploring the possibilities ofsolar to power in the Emirate state.Qatar plans to boost its annual liquefiednatural gas (LNG) capacity by eightmillion tonnes to 39 million tonnes by the end of 2008. Meanwhile,Bloomberg quoted Steve Peacock, BP president for the Middle East andSouth Asia, as saying: “We are still indiscussions about what could be

possible. We could help with new gas exploration and alternative formsof energy.”

Global

Partner’s assuranceD1 Oils, BP’s biofuels partner, isclosing its Middlesbrough, UK, refinery because it cannot competeagainst heavily-subsidised producersin the US, according to a variety of news sources. Elliott Mannis, D1 Oils chief executive, said the firmwould now concentrate on its jointventure with BP, D1-BP, which waslaunched in October last year. Mannis said the company was nowgoing to refocus its business ongrowing the non-edible crop jatrophawith BP in India, Africa and Asia. D1 Oils is the exclusive supplier ofjatropha to the project and it will alsocontinue to work on developing otherplants for biofuel.

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People

46 HORIZON MAY 2008

A stern test ofcharacter

Perseverance has paid off for BP environmental scientistAlexandra Rickham who has booked her place at this year’sBeijing Paralympics, and is hoping to bring home a medal

46_50 people.qxp 24/04/2008 16:53

REPORT BY PAUL WHITEHOUSE

MAY 2008 HORIZON 47

bodied sailing competitions. “They asked if I was interested in sailing

with him and I started in October last year,”she says. “It has been totally full-on since then.I have been lucky in the sense that when I toldBP, they said ‘go for it’. I was working throughthe week, then at weekends I was sailing out ofWeymouth, Dorset.”

Then, in December last year, Alexandratook a break from her job, based in Sunbury,UK, to travel to the US to take part in selectionevents. “That is when we made our strides for-ward,” she says. “The first event, the MiamiOCR [Olympic Classes Regatta], was at theend of January and our main objective was tobeat the two other British teams. We did soand came fifth. It was exactly what we needed.We were learning lots about the boat andabout each other.”

Two months later, at the US Disabled OpenMidwinters regatta in Florida, Alexandra andNiki took the bronze medal, securing theirplace at the Paralympics.

Alexandra’s success has meant she has hadto put her professional career on hold forlonger than originally expected. She and Nikinow divide their time between practising onthe water, studying tactics and physical train-ing, which ensures they are able to cope withthe demands of races which can last severalhours each.

Theywill travel to China for testraces in lateMay and go back again later in the summer toprepare for the games in September.

Alexandra, who will celebrate her 27thbirthday during the games, says : “As someonewho has been obsessed with the Olympics myentire life, it’s like all my Christmases havecome at once. Now I just need a shiny, prefer-ably gold, present to top it all off !”

She adds: “Sailing is liberating. I think itgives everyone a sense of freedom, whetherdisabled or able-bodied. And it is great whenyou go really fast. When you get an adrenalinerush, it always makes things better.”

Chief executive of the Great BritainParalympic team, Phil Lane, says: “With theSKUD class making its debut in the Games inSeptember we are delighted to be taking alarger number of sailors to the games to con-tend for more medals than ever before, and wehope to see the squad live up to sailing’s repu-tation in Britain as one of the country’s mostsuccessful sports.”

He adds: “To be selected for a ParalympicGames is the pinnacle of an athlete’s careerand an achievement that these athletes should be proud of. We wish them the best of luck over the next few months as they put intheir final preparations for the Games.” n

ATHLETES WITH ambitions to represent their country in the Olympics might well expect to spendyears training in order to make the

grade. Remarkably, BP environmental scien-tist Alexandra Rickham has been selected forthe Great Britain squad for China 2008 justsix months after meeting her sailing partner.

However, Alexandra’s circumstances arevery different to the household names likely to be at the forefront of media coverage for this year’s Beijing games. The 26-year-old will be taking part in the inaugural SkiffUniversal Design (SKUD) 18 sailing classcompetition at the Paralympic Games—anachievement which is testament to hercourage and determination to overcome the legacy of a childhood accident which left her paralysed.

Alexandra was 13 years old when she brokeher neck in a shallow diving accident during aholiday in Jamaica, where she has family. Theinjury was so severe that Alexandra was lefttetraplegic, meaning she has some paralysis inall four limbs.

She underwent medical treatment inEngland and Cuba, and during a rehabilita-tion programme in the US she enjoyed sailingfor the first time. But it was many years beforeshe was able to develop her love of the sport.

“During rehab in Miami, they took us outsailing one day and that is where my interestarose from,” says Alexandra, who lives inEpsom, in the southeast of England. “I hadalways been into sports before my accidentand had done a lot of competitive equestrianevents, swimming and tennis. But when I gotback to school I didn’t have much time forsports, and then I went on to university.”

In 2006, as she studied for a masters degreein environmental technology, Alexandra’sinterest in sailing was rekindled when a decision was taken by the InternationalParalympic Committee to introduce a newclass to the games—the SKUD 18, a two-per-son keelboat. The intention was to open up theclass to those with more severe disabilitiesand, as there was also a desire to get morewomen competing, a stipulation was writteninto the rules that all crews should include atleast one female member.

Alexandra says: “I had just decided to give ita go again when this guy I had met previouslysaid he was looking for a severely disabledwoman to train with him as a helm in aParalympic campaign

“That was more than two years ago and I sailed with him for eight months.”Unfortunately their hopes of sailing competi-tively were dashed when they failed to secure

SALIENT FACTS

The Paralympic sailing event where Alexandra willbe competing uses a new type of vessel called aSKUD, based on an open type of boat used byOlympic sailors.

It is around 5.8metres (19 feet) long, wide-bodied, keeled, to help avoid the possibility of itrolling, and both crew members have to bestrapped into seats on board. That is a vital detailwhich helps to introduce an element of fairnessbetween competitors with different levels ofdisability, by effectively placing everyone on thesame level. While Alexandra is classed as having asevere disability, her sailing partner Niki Birrell is inthe most minor category under Paralympic rules.

Alexandra and Niki will compete in one of threeParalympic sailing classes, at a course in Qingdao,East China, two hours away from Beijing by air.They can expect to spend six days sailing, with upto 12 individual races.

Although they are funded by the BritishParalympic Association the team is looking forfurther sponsorship.

The main sponsor of the Great Britain team inboth the Olympic and Paralympic Games isinvestment company Skandia. You can sign up fortheir supporters’ club for free atwww.skandiateamgbr.com.

The Beijing 2008 Paralympic Games opens on 6 September and closes on 17 September. Thesailing events will take place at the QingdaoOlympic Sailing Centre from 8 September, with the finals scheduled for 13 September.

sponsorship, and Alexandra decided to con-centrate on her career. She was soon employedby BP, where she had some previous gap-yearexperience. “I was deciding to really focus onwork, although I had said anyone looking for apartner should get in touch,” she says.

A year later Alexandra received a call from the Royal Yachting Association aboutNiki Birrell, who has cerebral palsy but had previously been competing in able-

Alexandra is hoping for a Paralympic medal

46_50 people.qxp 24/04/2008 16:54

PEOPLE

48 HORIZON MAY 2008

A combination of imagination and determination has led four BP employees to fulfil theirambition of securing book deals, as Matt Davis discovers

ACHIEVING TARGETS at work is some-thing all employees strive for, but to reachequal levels of success in a hobby or pastime issomething to be really proud of, as RussWhitfield recently discovered when his localbookstore held a special event to mark thelaunch of his first novel.

Russ, who is the content editor of BP.com,was surprised and delighted to be met at theevent in London, UK, by a queue of fans allwanting signed copies of Gladiatrix, his workof historic fiction about a female gladiator inAsia Minor.

He is equally pleased that his first effort,which has been published by MyrmidonBooks, has already been endorsed by well-known historical fiction writers SimonScarrow and Scott Oden.

“People have been really nice about thebook, which is so encouraging,” he says. “Ihave had e-mails from people who have reallyenjoyed it, and the bookshops have alreadyput in more orders.

“The event at the bookshop was a bit nerve-racking because they made it into aRoman-themed afternoon and I was asked togive a talk, but it went really well.”

Russ’s book, which he began writing in2002 after taking inspiration from a televi-sion show about gladiators, debuted with aprint run of 10,000 copies, and St Martin’sPress recently acquired the book’s US rights.

He got up early to write it for four years,between 4am and 6am most mornings, beforegoing to work for BP at Sunbury, and he isalready working on a sequel.

“I only told my colleagues about the bookonce I’d got the publishing deal,” Russ admits.“I was never planning to do a sequel, but I amgoing to write one now—and I hope I willwrite it a lot faster than my first one!”

“We’re all really excited for Russ,” says Joe Massucci, BP’s US general manager ofcommunications, based in Houston, Texas.Joe is an experienced author who has had twobooks published over the last nine years.

“It’s like winning the lottery or somethinglike that,” he says, when asked to describe the

The BP staff who have booked their places in publishing history

BP STAFF AND THEIR BOOKS

ful outlet for your imagination. At BP every-thing is very technical and black and white,and as controlled as we can make it. Whereasin fiction, anything is possible.”

Joe has since written three more books,including a sequel to Code Alpha called TheMillennium Project, and two others that arecurrently being marketed by his agent.

Lorne Gifford, a subsea engineer for BPAngola, got the idea for his upcoming novel,The Andaman Express, when he was helpingout at school careers fairs. He realized mostchildren didn’t know what professional engineers did, or how interesting a career engineering was, and suggested to the famousnovelist Ian Rankin that he write a thrillerbased on the oil industry.

“His response was that writing a book was-n’t really all that hard and that if I had a goodstory line then I should do it myself,” saysLorne. “Hey presto—many years and count-less drafts later here we are.”

Lorne’s book, set in South East Asia,revolves around the control of natural gas production there.

“I’ve made the plot line as realistic as possi-ble,” he says. “It fits with the politics and tech-nical aspects of energy production and con-sumption in the region.”

Like Lorne, BP organizational capabilityanalyst Trinia James has based her novel onher experiences in the workplace, albeit in aslightly more escapist sense.

Based in Houston, Texas, Trinia began writing her Mpire trilogy in 2004, after being made redundant from another firm,

Joe Massucci and Code Alpha

Lorne Gifford and The Andaman Express

Trinia James and Mpire

‘Writing fiction is just a wonderfuloutlet for your imagination. At BP everything is very technical

and as controlled as we can make it. Whereas in fiction,

anything is possible.’Joe Massucci

experience of first finding a publisher.Joe’s idea for his first book, Code Alpha,

came from working for BP. “The climax of thebook takes place aboard an oil tanker, and Igot that idea from touring one,” he says. “I wasworking in crisis management in those days,thinking about the possible impact of an oilspill or something like that— how the compa-ny might be at risk if something happened.”

He adds: “Writing fiction is just a wonder-

46_50 people.qxp 24/04/2008 16:57

MAY 2008 HORIZON 49

TOP TIPS FROM BP EMPLOYEES ON BECOMING A PUBLISHED AUTHOR

1Find your time to write.

“People work differently,” says Russ Whitfield.“I’m a morning person, whereas other writers liketo work in the middle of the night.”

”Usually the last hour of the day when everything is getting quiet is when I like to write,” says Joe Massucci.

“I was working for another oil company as an offshore construction manager and spent a sixmonth stint offshore with very few trips home,”says Lorne Gifford. “Isolated from the normaldistractions of children, household jobs and TV Ifound it a good way of escaping the 24-7 nature of offshore life.”

“I worked best between one and two o’clock inthe morning,” says Trinia James.

2Finish your book, for one reason or another.

“Nearly everybody is starting to write a book, butanyone who says they’re just writing for the loveof it is probably not telling the whole truth,” saysRuss. “We almost all want to see it on a shelfsomewhere.”

“I was just writing for my own enjoyment,” insistsTrinia. “Then after a year my friends said ‘this isgood’ so I decided to complete it.”

3Learn to handle rejection.

“Thick skin and an inability to accept no as asuitable answer are the main requirements for anauthor,” says Lorne.

“I used to post my rejections up on the wall,”laughs Trinia.

“I sent Gladiatrix to 30 publishers before I heardback,” says Russ. “In fact the morning I decided tostop sending it out to publishers I got the phonecall from Myrmidon asking me to dinner to talkabout the book. It felt like fate.”

having just given birth to her son. “I watched all 15 years of the TV show Law

and Order,” she says. “Then I just decided toturn off the TV and write something better.”

With her newborn son in her lap, it took Trinia a year to complete a racy transat-lantic trilogy about a corporate Texan dynasty,before landing a job at BP. Once there, Triniafound her new colleagues supportive of her ambition to write novels, particularly when it came to making sure her dialogue was authentic.

“One of my bosses is Irish,” she says. “So hewould help me out by saying ‘you have to put

this Irish phrase in the book,’ and then I would go for meetings in England and doresearch there to make sure the English sec-tions of the book were authentic.”

The first novel in Trinia’s trilogy, In SearchOf The Lost, was printed in November byKendall Publication. She received 317 rejec-

tion letters before eventually finding a pub-lisher willing to take it, and admits that whenshe got the ‘yes’ letter “I cried”.

The heady world of book signings and publi-cists may be a far cry from routine employ-ment at BP, but all four authors credit theiremployer for a role in their success, and agree itwould take a great deal to force them to consid-er giving up their jobs to turn author, full time.

“I’m not just toeing the employee line—Ilove working for BP,” says Russ. “I’ve no plansto quit the day job just yet, unless of courseRidley Scott calls me with a movie offertomorrow, which I think is unlikely.”n

Russ Whitfield at the launch event for his debut novel, Gladiatrix

‘Thick skin and an inability to acceptno as an answer are the mainrequirements for an author.’

Lorne Gifford

RIC

HA

RD

PR

ICE

46_50 people.qxp 24/04/2008 16:59

PEOPLE

50 HORIZON MAY 2008

US

Intern milestoneBP ‘s Texas City Refinery hascelebrated enrolling its 100th processtechnology intern. The programme is apartnership between BP, United SteelWorkers and College of the Mainland,San Jacinto College, Alvin CommunityCollege, Houston Community Collegeand Lee College, where the studentsare enrolled in the process technologyassociates applied science degreeprogrammes. Students who work atthe site learn first-hand about the oilindustry and earn credits toward theircollege degrees. Ten interns arecurrently enrolled in the programmeand will be honoured as a group. George Ayala, interimlearning and development manager

said: “Our internship programme hasbeen hugely successful, and this is asignificant milestone for us.”

US

Snowboarding champBP’s Casey Smith has achieved moresuccess in the world of competitivesnowboarding. For the second yearrunning, Casey, who is 53-years-old,won first prize in the division for menaged 50-54 during the NationalStandard Race (Nastar) NationalChampionships, held at theSteamboat Springs, Colarado. TheHouston-based infrastructure designleader for BP America’s 21st centurypetrotechnical developmentprogramme also set a new personalspeed record.

US

Degree honoursBP’s chief scientist Steven Koonin,(pictured) has been awarded anhonorary degree from Michigan StateUniversity (MSU). Lou Simon, MSUPresident, says: “Koonin’s work inglobal environmental sciences is

helping to inform research inuniversities all over the world on thedevelopment of sustainable andrenewable energy sources. Hisresearch will enable future generationsto take the next steps in preserving the environment.”

US

Pedal powerA BP team with more than 700members completed the BP MS 150— the 24th annual Lone Starchapter’s bike ride from Houston toAustin in Texas. Nearly 13,000 riderstook part in the race, which is expectedto raise a total $13 million for multiplesclerosis research and services. TheBP team was supported by more than200 volunteers along the course.

NEWS IN BRIEF

SIX BP employees plan to walk a midnightmarathon to raise money for cancer researchin memory of loved ones and as a tribute tothose currently battling the disease.

The group will take part in the 10thEdinburgh Moonwalk, an organized 26-milewalk through Scotland’s capital city, whichwas developed as a result of overwhelmingdemand for the London Marathon.

BP’s team is led by BP Magazine editor LisaDavison, who lost her 58-year-old stepfatherDavid Welsh to cancer last year, just threemonths after he was first diagnosed with thedisease. Lisa says: “I think losing someoneclose for any reason makes you stop and thinkabout the way you live, and makes you want tomake a difference. I have been talking aboutrunning a marathon for years, and since Idon’t think the knees can take it anymore thisseemed like the next best thing!”

Lisa will be joined by her mum Andrea, sister Nicola, and five BP colleagues—newspublications and executive events managerBarbara Peen, event managers NancyJohn and Paula De Sousa, exploration and production external affairs adviser ClareBebbington, and press office and distributionadministrator, Carolyn Copland.

Carolyn is walking in recognition of her bestfriend Erica Jones’ recent battle with breastcancer, and in memory of her father, WalterChignell, a Second World War veteran whodied from cancer six months ago.

Carolyn says: “My father was given tremen-dous care while he was ill and he also participated in a research programme, sohopefully his course of treatment may be beneficial to future sufferers. Unbelievably

Burning the midnight oil To raise funds for the ongoing fight against breast cancer, and as a tribute to loved ones, six BP employees will complete a night marathon in Scotland, UK, writes Lucy Harvey

manyof these research programmes are fund-ed by charities so it is important we all try togive a little back.”

She adds: “For me Lisa’s idea of doing theMoonwalk came at the right time. It’s givenme something to focus on and remain positiveabout, and as the event takes place on father’sday it is a truly fitting memorial.”nTo sponsor the team’s marathon effort visitwww.justgiving.com/bploonies.

The ‘BP loonies’ include (from left to right) Lisa Davison, Paula De Sousa, Nancy John, Barbara Peenand Carolyn Copland, who hope to raise lots of money for cancer charities through their efforts

46_50 people.qxp 24/04/2008 17:01

Endgame

MAY 2008 HORIZON 51

HORIZON CROSSWORD

DILBERT BY SCOTT ADAMS

Across1 He succeeded Richard Harris

as Dumbledore (7,6)8 Rocky islet associated with

ocean racing (7)9 Far from moderate (7)

11 Tiny spots (6)13 This coast runs north from

Walvis Bay (8)15 Mammary gland of female

cattle (5)16 Any one of the bones of the

fingers and toes (7)18 Its capital is Munich (7)19 A Muslim official or governor (5)21 A delicate aphid-eating insect (8)23 Not genuine (6)24 Italian composer (1858-1924) (7)25 Awkwardly energetic like a

young horse? (7)27 Jazz group often found following

the news (7,6)

Down2 As an alternative or substitute (7)3 Warlike Asiatic nomad (3)4 “I … the air promise-crammed,”

(Hamlet) (3)5 Tomatoes, olives and feta

cheese (5,5)6 Much of Pyscho is set in one (5)7 Make excessive demands on (7)8 High-jump technique (7,4)

10 Swiss-born American composer (1880-1959) (6,5)

12 Former name of Vyatka (5)14 The Sorcerer had one (10)17 This could be horribilis or

mirabilis (5)18 Stolen in De Sica’s 1948 film (7) 20 Jacqueline Lee …… was born

in 1929 (7)22 Card game sometimes involving

a dummy (5)25 An aggressive dog owned by a

contemptible man? (3)26 One circuit of a racetrack (3)

Editor Greg Goodale (group), tel +44 (0)1932 767 025 Deputy editor Adam Smith (exploration and production; alternative energy), tel +44 (0)1932 767021 Associate editor Lucy Harvey (refining and marketing; people), tel +44 (0)1932 767026 Americas editor Paula Kolmar, tel +1 281 366 3702 Contributors: Vartan Amadouny, Helen Campbell, Matt Davis, Vicki Hammond, Julia Pierce, Nick Reed, David Shariatmadari, David Vigar, Paul Whitehouse, Don Willmott Design Beetroot Publishing Print Managed by Williams Lea Change of address, subscriptions and distribution Carolyn Copland, BP, 1 St James’s Square, London SW1Y 4PD. tel +44 (0)20 7496 4340, fax +44 (0)20 7496 4574, email: [email protected] enquiries By email to [email protected] or tel +44 (0)1932 767 021 Horizon Online editor Paula Kolmar, tel: +1 281 366 3702 Intranet address: horizononline.bpweb.bp.com

Solutions for issue two were:Across: 1Richthofen; 9 Blur; 10 Tweedledum; 11 Impede; 12 Munster; 15 Air Bags; 16 Norma;17 Lynx; 18 Flea; 19 Scott; 21 Estelle; 22 Iron Age; 24 Infant; 27 Evanescent; 28 Ravi; 29 SmartMoney.Down: 2Iowa; 3 Hyenas; 4 Halogen; 5 Fado; 6 Namibia; 7 Blue Dahlia; 8 Green Snake; 12 Millefiori; 13 Nine-To-Five; 14 Royce; 15 Amati; 19 Slaters; 20 Trident; 23 Nuncio; 25 Nana; 26 Ante. The winner was Mr. A. Preece, Swansea, UK.

For your chance to win a stylish Cross pen, simply fill in the answers and return to Horizon crossword, 1 St James’s Square, London SW1Y 4PD,United Kingdom by 27 June 2008.

51 ENDGAME.qxp 28/04/2008 12:09 Page 55

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